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China banned BTC mining could be good news because China’s hash rate dominance already diminishing, BTC controlled by no one

Crypto markets have tanked almost 20% over the weekend. Similar to instances in the past, the panic selling has been driven by fear, uncertainty, and doubt (FUD) from China — but there could be a silver lining. Because Bitcoin is really not controlled by anyone.

Chinese mining pools close up shop, China hash rate dominance already diminishing

China’s recent crackdown on Bitcoin mining operations has accelerated a sell-off that began with Elon Musk’s massive turn towards the asset. With nearly $400 billion exiting the crypto market over the weekend, this is one of the largest rapid declines in the short-term history of the crypto industry. Bitcoin dropped to a low of $31,000 and Ethereum dropped to nearly $1,700 as new market entrants sold out in panic.

Youtuber and crypto analyst, Lark Davis, commented:

Anyone with long experience in the crypto market will have seen it all before. This time around, China’s mining crackdown could actually benefit the industry in the long run.

Accordingly, Co-founder & CTO of Glassnode, Rafael Schultze-Kraft also agrees with the above view. According to him, while we are only interested in FUD and buy the dip, Bitcoin simply continues to work as intended. No one controls, unstoppable for over a decade.

Furthermore, according to Cambridge Center for Alternative Finance, 65% of the network is controlled by Chinese miners. Bitcoin’s concentration is so high. The fact that China recently banned Bitcoin and created FUB is complete bullshit. China controls the network. All top 10 mining pools are operated by Chinese/in China.

According to a Reuters report on May 24, BTC.TOP and HashCow announced the suspension of their China businesses. BTC.Top cited regulatory risks, while crypto miner HashCow said it would halt buying new Bitcoin rigs. In addition, crypto exchange Huobi suspended both crypto mining and trading services to mainland Chinese clients on Monday, which describes that it will instead focus on overseas businesses.

In January, mining news outlet Miner Daily predicted a decline in China’s mining dominance and an increase in their market share to North America. At the time, it was estimated that the US had an 11% market share in hash rate, a number that is now growing at a faster rate. In early May, Nasdaq reported that Texas was becoming a mecca for mining operations due to favorable energy prices.

Bitcoin miners such as Bitmain, Blockcap, Argo Blockchain, Great American Mining, Layer1, Compute North, Riot Blockchain, and Whinstone are just a few of the major players in the industry that have chosen to set up shop in the Lone Star State. A large portion of the energy generated in Texas comes from renewable sources, such as wind and solar, which account for more than 25%. There are also stricter regulations in the US, especially for cryptocurrency mining activities.

Furthermore, according to Glassnode’s chart, one can expect user growth on the BTC network. No manufacturer is taking advantage of this opportunity to buy at a discount. And most of all, analyst Willy Woo thinks the bull market is still intact.

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