How Does The Closure Of A BTC Mine In Sichuan, China Affect BTC❓

in LeoFinance3 months ago

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Sichuan, China closes Bitcoin mining farm

If anyone is one of the biggest beneficiaries of Bitcoin's price increase, I think Bitcoin miners must be among them. And although the price of Bitcoin has decreased in the past few months, it is still within the tolerance of Bitcoin miners. However, I also said that although Bitcoin miners are one of the biggest beneficiaries of Bitcoin's price increase, the risks of miners are also great, because investing in mining farms requires a lot of costs. Although the price of Bitcoin is still high, Bitcoin miners still face other risks, such as changes in Bitcoin's policy.

In the past, China's Bitcoin mining was very large, and once assumed more than 65% of the computing power of the entire Bitcoin network. But now China's policy on Bitcoin has undergone tremendous changes, and many regions have begun to gradually close Bitcoin mines, which has dealt a huge blow to Bitcoin miners. At the same time, it has a huge impact on the Bitcoin network computing power. Data shows that the average Bitcoin network computing power has dropped to around 130EH/s, which is more than 30% lower than the high point of 190EH/s.

It is reported that in the early morning of June 20, Sichuan, China, completely cut off power to the Bitcoin mining farm. This personal news is a big bad news for Bitcoin. We must know that the scale of Bitcoin mining in Sichuan, China is very large, not only the largest Bitcoin mining area in China, but also the largest Bitcoin mining area in the world. The total closure of Bitcoin mining farms in Sichuan, China is of great significance, and it basically confirms China's final attitude towards Bitcoin mining farms. Because even after this decision is withdrawn, Bitcoin miners are unlikely to invest in Bitcoin mining farms on a large scale.

Many netizens support the closure of Bitcoin mining farms?

Bitcoin suddenly dived around 18:00 on June 20 and quickly dropped to a monthly low of $33,000. It seems that the market is digesting the news of China's closure of the Bitcoin mine in Sichuan. Of course, this is actually always predictable news, because China’s signal to close the Bitcoin mining farm is not a day or two. In fact, the sharp plunge of Bitcoin in May was related to China's Bitcoin policy. In fact, the main reason for China's closure of Bitcoin mines is not to affect the operation of Bitcoin, but to show China's attitude towards Bitcoin.

It can be seen that although Bitcoin is large in scale, there are still a few people who really support it, especially China has fewer loyal fans. In particular, the impact of Bitcoin mining farms has directly led to an increase in the price of graphics cards. I think it has become the public enemy of all users who engage in mobile phones. In addition, mining is very serious in the consumption of electricity and energy, and has a great impact on coal prices. You must know that China's coal is also very tight now.

However, some Bitcoin supporters in the market don't think so, because even if China closes Bitcoin mines, miners can move abroad. For example, Carlitos Rejala, a member of the Paraguayan Congress, expressed his stance on the news of Sichuan’s closure of Bitcoin mining farms, hoping that Chinese miners would go to Paraguay to mine. Of course, it is not just Paraguay, but big countries like the United States and Russia have very ambiguous attitudes towards Bitcoin. In fact, even if all Bitcoin miners in China stop production, it will not affect the operation of Bitcoin.

After the closure of Bitcoin mines in Sichuan, China, it should be good news for foreign miners

It can even be said that Chinese Bitcoin miners are still in a competitive relationship with foreign Bitcoin miners, and they may wish that we ban mining. In this way, the loss of a strong competitor to a foreign Bitcoin mining farm may also reduce operating pressure. If the price of Bitcoin remains strong, then China's large Bitcoin mining farms are likely to move abroad. However, China's closure of Bitcoin mining farms is not only to ban mining, but also to prepare for a total ban on Bitcoin.

Losing the Chinese market, Bitcoin is like breaking its own arm and losing a tool for making money. You must know that Bitcoin itself does not generate value. The reason why it increases in value is mainly based on someone willing to take a high position. In fact, it is similar to a game of drumming and passing flowers. If Bitcoin loses the Chinese market, it will not only lose a few miners, but a large group of potential takers. This is also the real bad news after Bitcoin lost the Chinese market. Of course, Bitcoin is not completely impossible to reverse, after all, Bitcoin is a highly centralized cryptocurrency system.

There are data showing that 10% of Bitcoin addresses are in control of 90% of Bitcoin, which has great operability. You should know that some Bitcoin giants are stepping up their hoarding of Bitcoin recently. The more concentrated Bitcoin, the easier it is to manipulate the price of Bitcoin. I think this round of Bitcoin diving has been adjusted for a month, and it is time to take advantage of the news of the closure of China's Bitcoin mines to show my attitude.

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Although the stoppage of thr mining affect china and the world by drop in price but i still strongly believe with foreign minner the price can still go up.
Thanks for this article. It is educative.

Thank you for your comment, government regulation will make BTC's road more and more difficult!

Interesting however if China does go on a full ban of bitcoin, it's only going to be at their detriment and not at Bitcoins detriment. Perhaps it will tell on the price in the short run, but that's all it'll be.

Does China have a superior currency in terms of ability to appreciate? to be transparent? to be immutable? to be cryptographically secure? Borderless? Without control of central authority? I guess no.

If China does not see that Isolating itself from Bitcoin is as good as isolating itself from the internet(global village) then im sorry for China and the people who'll choose to remain under such primitive authoritarian environment.

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It is still difficult for China to recognize the status of BTC!

Curated into our Leofinance Curation Report and Upvoted by @hodlcommunity.

Cheers !

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Thanks!!

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