Bitcoin Mining Banned In China! A Big Opportunity For Mining Bitcoin Else Where In The World!
A Trillion Dollar mistake?
China’s redundant FUD or crackdown on Cryptocurrencies is nothing new nowadays. However, recently China has targeted a more niche sector in the Crypto space… and that’s mining.
It all comes down to centralization. Chinese mining centralization to be more specific, has always been a thorn to growth and prosperity for Crypto Currency.
In May, the government called for a severe crackdown on bitcoin mining and trading, setting off what’s being dubbed in the crypto space as “The Great Migration” . The Exodus of a collection of mining companies and exchanges all already underway and many western American organizations are open arms. Most miners have been headed to North Middle America, Texas, Texas is often recognized as the world’s lowest energy prices and has a growing share of renewables since 2019. Political leaders are also pro crypto and are willing to work with the space’s adoption? What other ingredients or weather setting is ripe for a miners operation when renewable energy is in question?
Michael Saylor of MicroStrategy picks up 489,000,000 worth of BTC. “If this didn’t happen, we would have paid DOUBLE.”
Even the mining pools have been seeing a decrease. What was usually a pool of hash power… now they’re forced to find another option. 500 watts of energy may be a heavy load for Texas and the U.S. but perhaps this will bring change. During a pandemic, we’re seen many features of our norms changed. 2021 is a year for green!
“10’s of billions dollars in revenue that was doubling every year. they’ve essentially surrendered the bitcoin mining profits to the west. They also forced all of their BTC holders to sell in a hurry.”
A massive transfer from east to the west
The Cryptocurrency space has all eyes on mining, as 40% of total mining hash power has decreased and may take up to 12 months to recoup but the network is secure, it’s not as fragile as it used to be but yet, it may take time. A mass exodus of capital is happening as miners have to sell bitcoin in order to finance their exodus, the holders of BTC in China have to sell to pay off their financiers, their financiers are selling because business is leaving…it’s a forced government liquidation of assets from the East to Western buyers.
“MicroStrategy: $489,000,000”!! worth of BTC. “If this didn’t happen, we would have paid DOUBLE.” -Saylor
China’s crackdown on Bitcoin mining is a jab to the crypto space but many are speculating that this exodus of miners from China is one of the biggest, most expensive mistake they will ever make. Now many companies including his have picked up on all the selling of what was necessary for the miners to get the exodus underway.
MicroStrategy purchased $489,000,000 worth of BTC and claims it could have been double the price if not for this event. Although a temporary fall in the hashrate, many are speculating this will be the most robust event for Bitcoin. Allowing for more miners to join in, and bitcoin to balance out the adjustment of hashrate. In the longer term, once they’re set up, the hashpower is sure to return to all time highs. a more stable network. The BTC won’t be as centralized as it was. No longer will it receive the same criticism of “chinese dominance” or any sort of yearly Chinese FUD. Will it be in a more stable country? away from political risk? and what about the environment?
Did you know China generated 53% of the world’s total coal-fire power in 2020 despite climate pledges and building of renewable plants. Those plants themselves need to be purchased as well, as the miners who had once utilized those have up and left. This may spark a greener year for China, Bitcoin and possibly incentivise the world for change!
So perhaps this is actually a GOOD thing for the space. Releasing BTC’s grasp from China and into a more distributed grasp of the people.
It’s yet to be seen but as of so far, It seems a positive wave is on the way.
Until next time TCLers!