China’s crackdown means Bitcoin is working, says crypto miner
China’s government has reportedly suspended all cryptocurrency trading, restricting all mainland-based bitcoin and trading sites to operate only on the Chinese mainland. This has resulted in a sharp drop in the price of bitcoin, and the exchange rate has dropped to just over $3,000. This is a big blow for the digital currency, which had become popular because of the lack of regulation in China.
It is often said that the Chinese government’s recent crackdown on cryptocurrencies and ICOs is working, and a number of Chinese miners are even scrambling to find ways to continue mining. The country’s central bank this week issued a guideline to four of the country’s top cryptocurrency exchanges (BTCC, Huobi, OKCoin and BTCChina) to halt “commercial trading” and conduct their business on a “trading platform” instead.
The inevitable crackdown on initial coin offerings (ICOs) in China is now leaving a vacuum behind it. Not only are ICOs being made illegal in China, but the cryptocurrency exchanges that had been facilitating them are now under pressure to close their doors. This has left many local Chinese crypto users scratching their heads in confusion as to how this might affect them and their trading.. Read more about why is china cracking down on bitcoin and let us know what you think.
China’s suppression of bitcoin (BTC) mining and trading of cryptocurrencies has been a major factor in the red candles on the charts of the cryptocurrency market lately. But one bitcoin mining engineer thinks China’s ban on crypto-currencies is great news.
Brandon Arvanaghi, a former security engineer at cryptocurrency exchange Gemini, compared China’s tough stance on bitcoin to Facebook and Google’s bans.
Arvanaghi called China’s ban a rite of passage for free technology and stressed that the crackdown means bitcoin is working, not failing. It makes countries quake in their boots, he added.
According to him, countries are now switching sides and China is responding to bitcoin in the same way as major Western tech companies, which is incredibly beneficial for bitcoin in the long and medium term.
Miners leave China for the United States, where one phone call can stop an entire mining operation.
Bitcoin is the largest store of value in the history of planet Earth; nothing compares to it, Arvanaghi said, adding:
We are going to value our bitcoin assets, and volatility is the tax we pay to be on the right side of that transaction.
Related: Banks are lining up as China’s central bank imposes restrictions on crypto-currency accounts.
Mr. Arvanaghi also compared the bitcoin journey to a video game. In this trope, market-destroying news, such as a drop in hash or geopolitical tensions, is the patron on the road to an inevitable state where bitcoin is universally recognized as the greatest store of value we have ever seen.
Meanwhile, miners around the world will be looking for cheap energy, and Texas will be a potential address, Arvanaghi predicted recently. We have governors like Greg Abbott in Texas promoting the mining industry. It will become a real industry in the United States, which will be incredible, he said.China has been a stronghold of Bitcoin mining for a long time, so much so that it became synonymous with the phenomenon. However, now that China has started cracking down on cryptocurrency exchanges, the country’s miners may be in for a lot of bad news. After all, the country is by far the biggest bitcoin mining center in the world. According to an industry analyst, the falling demand for Bitcoin in China is the reason why some miners have been scaling back operations.. Read more about china cryptocurrency name and let us know what you think.
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