Bitcoin Forum

Hello Everyone,

I have a quastion , if china ban miner , bitcoin hashrate will drop back to 2013?

Bitcoin difficult so high because for china miner around 70%

Thanks~

You are worrying too much buddy. If China does go through with the ban, the mining companies like Bitmain etc won't just shut shop, but would relocate to other countries where they can continue their operations smoothly in a legal manner.

Agree, China is only worried since we all know that China doesn't want their money to be sent out their country which blockchain/crypto did thru mining, one of the main reasons why they are shutting down mining in their country. So, most likely the option is for other mining companies to move to other countries where it is legal with cheap energy cost.

Maybe yes, maybe no ;D
Although China really bans the miner, I am not sure that the hashrate will drop significantly in one day because there will be a new company outside of China will replace their position and will be the next mining company.
But I am not sure that China really does that because mining bitcoin will give them a chance to make a big profit in the long-term or their government have a secret reason to ban the miner.

They aren't going to ban bitcoin mining.  How many times have we heard that China is banning bitcoin, it never stops.  Even if they somehow did those miners won't just magically disappear.  They will be sold off to other miners so the difficulty wouldn't change much.

I can never understand why politicians claim that mining Bitcoin causes a flight of capital. I suspect the reverse is true. You might just as well say that manufacturing cars causes a flight of capital, because auto-makers have to import the steel.

I don't think they care about flight of capital. It is just one of the made up reasons to rally against crypto. What they actually want to avoid is to allow a "type of money" that does not need the backing of political power.
In a world where Bitcoin gets adopted widely as a currency, groups like Bitmain can potentially have enough power to be an alternate political system by themselves. Chinese are particularly fond of concentrating political power (Politburo, the party and all that communist compulsions) and they are unable to make up their mind about bitcoin.

Concentration of mining in China is kindda a double-edged sword for them. They let the miners use all that free energy and monopolize mining, probably in the hope that they can takeover and call shots from behind the curtain.
To spoil their plans, miners probably see bitcoin and mining as the one thing that their communist overlords are finding hard to control. The Chinese govt is wary that miners and bitcoin may get too powerful to control (considering that they have already started to diversify in terms of location).

This maybe the reason that China has this love-hate relationship with Bitcoin..(Ban it! No wait, Rate it!..But Rate it below EOS!!)

the possibility might occur. however, although China is a country with a large number of miners, there are still many miners from other countries. and as long as it can still handle transactions from bitcoin then I think it won't be too influential.

I'm not sure about the "flight of capital" excuse, but China pretty much took the "hurts the environment" reasoning. Which is quite weirder in my opinion, knowing that based on a few articles China has been pretty much one of the biggest plastic dumpers(in Asia, I think). Their excuse to ban bitcoin mining is pretty much BS to me.

With all the things they do have made or decisions by China.It turns out that it is already unbelievable if they would push it through or would just still remain as it is just to create some drama or buzz.
So i dont really care at all on what would be the steps they are planning to take.

It seems to me as well that the opposite is true. Any legal business draws investments into the country one way or another. China will lose a lot if the ban is really imposed. As for Bitmain, it might suffer serious losses as well, but mining will probably still continue. So the hashrate might drop, but not very significantly.
China is one of the biggest polluters in the world. I think it's more of a good excuse of getting out of the country something that cannot be controlled and traced to specific people. China is a fan of controlling and spying on citizens. Blockchain is simply not the kind of tech such a government can tolerate for long.

I never thought that China would close mining, China is known as the world's largest mining and also the most popular crypto investment

Yes. Definitely. I am not sure about the percentage, but if I am not wrong then China contribute to the lion's share of Bitcoin mining hash-power. If all that is removed, then the hash rate can drop very significantly (at least for the short-term). I read somewhere that China contributes to around 80% of the hash-power. So you can imagine what happens if this 80% is taken out.

What is the actual source for china doing anything, they've flip flopped many times on crypto.  Their ban of facebook and google hasn't stopped the success of these companies.

Yes. I f they ban mining companies like bitmain and the like from china can still sell the equipment.
Which is better for their customers so they know their miners were not used for mining like they would have been before the ban. ;)

Truly, China has a high influence on bitcoin but as at that, it doesn't mean if bitcoin is banned there, bitcoin won't survive. Bitcoin is already revealed and other altcoin are also available. The idea will be maintained in other countries and it will continue. It may take few time to gain balance but it doesn't mean it will die. If only they work against its survival by the strength of their technological capacity.

It may affect the hashrate but I believe it will be for short time only because the miners will have their own strategies how to continue operating in legal way. Any bad news related to bitcoin may affect bitcoin in general, but we should not be so worry.

Even if there is a blanket ban on mining from the Chinese government there is nothing much to worry as there are many mining farms around the world and even if the hash rate drops they will adjust accordingly so that there is nothing much to worry about the delay in transaction in the long run, but there might be a issue in the short term. I am not sure what the Chinese government is planning as millions are at stakes who invested in big mining farms.

A Chinese ban on mining would cause a drop in hashrate, but the hashrate would pick up over time as other countries pick up the slack - bitcoin mining tends to be self-correcting towards equilibrium according to its incentives. On the other hand, eliminating Chinese mining could spur more decentralization of mining, thus providing more security for the network in the long run.

I don't think that the Hashrate will drop significantly. Okay, given that China is a big country that has many miners and they decided to ban mining in the future. But, that's only on their country not yours, not mine. So, if China does that then no, it will not drop.

What? You do know that the hash power of the network isn’t locally restricted, right? It’s not like there is a hash power rate for each country.

China holds 81% of the network hash power[1]. If they ban mining, expect a huge increase in the total network block speed. Fees will probably go to the hundreds while the mempool fills up with tons of unconfirmed transactions. All of that in the ENTIRE network (you included).

[1] https://www.buybitcoinworldwide.com/mining/pools/

Maybe the hash rate will drop significantly but also the difficulty which will make mining more profitable and will attract more miners. Some countries where mining is cheap will pick up the slack. Do not worry.

I think if mining farms were to shut down it would be a good thing for decentralisation. I would rather the hashrate be in the hands of many individuals all over the world instead of in the hands of a few mining center owners. Satoshi's concept of "one cpu one vote" has been destroyed by these mining cartels.

No. China banning bitcoin mining will simply mean that miners will relocate.

There may be a temporary drop, but even that is very unlikely given that the rest of the world is still constantly in an increasing hashrate. Besides, this isn't news that is terribly new at all. China has announced their intentions long ago, and they've already done similar stuff to exchanges, which means that a lot of companies have probably already responded by moving operations out. This won't affect the actaul bitcoin network in any tangible way at all.


I think that they are probably more concerned about bitcoin itself facilitating the flight of capital, since it offers a way for citizens to bypass certain forex regulations. Their reasoning is probably something along the lines of people can use local currency to purchase the hardware, and gain BTC as a reward, which they can convert freely on the open market.

For how long will people still believe and fall for this speculation on the idea that China is going to ban bitcoin mining. And more over, Bitcoin mining farms are not basically companies that have their billboards around giving people directions to where their locations are. So if bitcoin mining or cryptocurrencies get ban in China, people will still be mining Bitcoin in as much that there is a ban .....

China is just one of so many places where you can mine, it will not drop that much. The mining industry will also survive because a lot of profitable miners are still doing their job. There’s no official news or what right now so we can still hope for a more good regulations.

china is the country that has more than miners than other country in the world, so usually they playing the price in the market, if bitcoin miner banned on china, i think the price of bitcoin will drop but, with stable price, because no more people play with bitcoin price anymore

If China seriously bans Bitcoin, maybe the Chinese people will seriously ban the Chinese government. Then Bitcoin will go up like crazy. Hodl is a good idea.

8)

people are like 2 years out of date.

"china" mining is already diversified into other countries a long time ago.
georgia, iceland, eastern europe, america, and so on.

anyone who in 2019 continues to scream "china own/control mining" are the inept squad that love to sound like the fox news crowd of racists that dont get true factual information regularly

Nothing to worry dude. Bitcoin is not only circulating in one country. And if China did not want a mining activity like bitmain do. It can relocate it in the other country. And don't also worry because there is a huge bitcoin users around the world not only in China. So the bitcoin must go on. Just give your full trust.

I'm not sure, because if China bans mining that doesn't mean they will not do it anymore. It only means the activity will be illegal but for sure some farms will continue running on a hidden schema. And yes, the hash rate will drop if that happens until China sends those miners to another country.

you are overthinking it.
this is the old FUD method that people have been using ever since 2013 and probably even before but i could only trace it back that much ever since they banned banks from investing in bitcoin people have been using the term "China banned bitcoin" to cause price drops so they could buy cheaper coins. the context changes every now and then and sometimes some other countries like India replace it but it is always the same bullshit :D

I remember, in 2017, China already has a firm decision for the crypto world, even China also banned ICO. The government also wants to stop crypto trading in China, block access to every website, close mobile applications that provide cryptocurrency trading services in China.

but, on the other side, China's enthusiasm for BTC is very high, China has the potential to threaten security, stability, internet infrastructure, and the volatility of crypto trades.

China is considered as a country that has an important role for the life of Bitcoin, because China dominates mining and China also dominates ASIC vendors, China also controls mining hashrate, so it will affect the bitcoin protocol.

all hashrate the Bitcoin network, 80% comes from 6 large mining pools, and 5 mining pools sourced from china mining.

I think, regulation or rule of government is a solution to limit every movement of miners. so the stability of Bitcoin will be balanced.

Though probably possible, I really doubt big farms would do it though, unless they're going use natural energy, rather than energy from the electricity companies; because I assume it would be pretty difficult to stay hidden from electricity companies due to the huge amounts of energy needed to run the bigger farms. I'm leaning more on them moving to other nearby countries.

As China holds the majority of the miners, ban from them will surely cause a drastic drop in the hash rate. If such scenario prevails for a short there will be increased number of transactions getting stuck on the network for certain time period until some other country take the things left behind. From my view mining equipments price will fall off which can be used by large scale investors, also this can be kind of such market manipulation to down the price of mining equipments.

Afaik hashrates only depend on your device and depends on the setting of your mining platform but if china bans bitcoin ,  bitcoin mining will be more easy because we know that china is a huge country which means more miners are expected to leave  .  this also allows other mining brand to be discovered   . this was a win win situation for both miners and mining hardware owners   ( store owner )

China has actually banned bitcoin miners since 2018, so the effect will not be large now that is only the issue raised again this year to make FUD.
You also don't need to worry that the mining company will be closed because China has banned mining, because many Chinese people have chosen to leave the country to get freedom in mining bitcoin.

China is a country that is so big, with a very large population that makes China has a very big impact on the development of digital currencies.
Whatever happens in China will make a real change in the development of cryptocurrencies.
The number of users will determine how the development of Bitcoin changes.
So I hope that nothing bad happens to China, let alone a ban on the use of Bitcoin.

Thats not true, they are just doing backroom deals with their buddies and a lot of bribe money is being thrown around.  The mining industry in China is full of corruption and they are doing everything they can do squash the competition. 

if indeed that happens, it will likely affect the bitcoin movement a little, because China is a big country and there are many bitcoin users or miners and besides that China has mastered the technology and of course there are many great people there who will still use me.
but if bitcoin mining is prohibited and becomes illegal in my opinion there will still be people who use it even though they have to hide, because they know that bitcoin is profitable and in any way they will still mine and use it because they also want freedom that can produce.

Only little ? But you said china is a big country and that is fact .  that also means that the banning will have a huge impact on the price of bitcoin  . i dont know the exact date of the banning but i think the banning did not yet happened because the price of bitcoin is still the same as before . when bitcoin goes down below 5k to 4k usd then that is an indication that the banning had started  .


Mastered the technology of mining ?  mining isnt hard at all and everyone can master it as long as you have the right tools and right environment .


That is possible but that is risky  . if ever they caught  , they will be fine and worst they will be jailed for a long time .

There will always be solutions to these things. Worry doesn't make us good in dealing with bitcoin. It will only spread FUD and will makes us poor in understanding things the way they could probably work. Should they ban bitcoin then there are so many other miners that could do the same work in some other countries. Who knows even cellphones can be used to mine bitcoin in the future without problems.

At present, large companies in China had transferred to countries with post-cold conditions along with lower electricity prices when China began drafting the ban. If China issues ban, that will not affect the Hashrate Bitcoin because all the big companies in this country like Bitman have plans to deal with this when this happens.

for some reason you are just making the assumption that China has banned bitcoin mining and then based on that you make another assumption that there is this law that jails people who break that ban!
there was no ban and there is no such law. and people are continuing to mine in China as before. all of this was a drama started a couple of days ago due to the bitcoin price rise and the fact that some people weren't done accumulating and wanted the price to come back down. they failed.

I don't think Chinese commoners have a say in what the Party does over there. I bet normal fork will get their ass thrown in jail faster than the speed of light if they try to as much defy the government.

It's difficult to say correctly anything about that. There is two thing will happen if China ban this then others companies or other countries find the another way to recover this. And another thing is if China ban this then maybe bitcoin hashrate will drop because China has capture huge market of this so it's maybe happen.

There are rumors about China and mining ban for years. But there has been no improvement in this issue. If it happens, there will be problems. But remember, Bitcoin is a decentralized money. In other words, market equilibrium will be achieved.

Eventhough China are one of the largest minners here in this world;  they can still replace by someone else if the china will banned bitcoin.  Therefore the hashrate will drop but in just a short period of time. Once there is a new country who continues the job which left by china it will rise once again;  so you should not to worry about.

I don't know where they will think to relocate too, they have pretty cheap electricity prices..
Reference:
https://www.ovoenergy.com/binaries/content/gallery/ovowebsitessuite/images/guides/how_much_does_electricity_cost__large-copy-8.png

first of all that picture is from 2011 (8 years ago!) and it is not reliable. secondly it is reporting the "average" electricity cost not the exact one. in many countries there is a wide range of electricity cost, in some places it is very cheap while in other places inside the same country it can be extremely higher. so you can't really decide based on that!

Relocation takes time unless it was done years prior to that announcement.  During those time, when China (assuming) ban's mining, the hashrate will heavily goes down making the next mining  for block difficult, if a block is yet to be mined, transaction will not be confirmed so this means there will be tons of unconfirmed transaction piling up the blockchain.  This will greatly affect the Bitcoin industry.  This happen before and we see users competing for the transaction fee making the price of tx fee bloated to the point that it is more expensive than local remittance fee.


Is there a law that support this claim?

First, China very extraordinary, China was able to defeat the United States from the economy sector. including in the world of Bitcoin and Crypto.
second, the climate of bitcoin users in China is actually quite dynamic and conducive.
third, China has a major contribution to Bitcoin mining. when BTC reaches 20K, BTC mining in China is considered a factor affecting the bullish market.
fourth, 80% of BTC mining is influenced by the state of China. what if the percentage is lost or decrease? of course, will affect the hash rate of BTC.

This is just a game for some miners, if the China bans the bitcoin and other crypto mining then the companies who are behind those huge mining industry will transfer their rigs to the other country, remember there were lots of countries that mining is not illegal.

Is China planning to block bitcoin because of electricity problems? or is there another reason? isn't China pro on the blockchain but counter to crypto? if it really happens then this is like a disaster because half of the network is probably located in China

China is one of the countries that mines bitcoin seriously, they almost have the best rigs in the world if china ban bitcoin for sure there will be a good effect to those miners who are left but always remember there are still other countries that can take those rigs meaning the difficulty will just decrease in a short period of time.

It seems what you like to say is this. What will happen it China bans bitcoin mining? That should be the proper question and topic.

Anyway, the leading mining company that has a huge mining data center and is the number one producer of bitcoin mining hardware across the globe is bitmain. They are selling antminer and the recent miner they are selling is the T9. But lets go back to the topic. If China will ban bitcoin mining it does not mean that  Chinese bitcoin miner especially bitmain will stop mining. They will just relocate their company along with their hardware to other parts of the world. Bitmain have already earned hundreds of millions from this trade they will not stop even in the face of bitcoin mining ban.

For a short time the hashrate will surely drop but i am sure mining companies have a safety plan in case this happens because we are talking about millions of dollars here. They will probably look for another country similar to China and move their equipment there, even if thats going to cost them a lot of money i think thats the only solution they have if they still want to continue their businesses.

there is some assumption that it is because of the plan of china to introduce their own cryptocurrency but an article came out that the possible reason is to save an environment and seriously wasting resources.
https://www.engadget.com/2019/04/10/china-ban-bitcoin-mining-wasted-resources/
https://qz.com/1590655/chinas-proposed-ban-on-bitcoin-mining-is-about-the-environment-and-capital-flight/

Though I am more inclined to agree with this article :
https://medium.com/datadriveninvestor/why-is-china-banning-bitcoin-mining-on-may-7-81a95f6884a7

I do not think that the hashrate will fall very much, because already now the Chinese miners are considering options for moving their facilities to other, more loyal to the cryptocurrency and miner countries.

I believe that China does not approve bans on Bitcoin in the future. Because many countries now start accepting and protecting Bitcoin. China is an economic powerhouse, and they will soon catch the size of society instead of ignoring it. I believe this will be an excellent opportunity for Crypto investors in this country soon after China accepts Bitcoin.

What told is correct when China started to ban ICO and told all exchanges to shut down till rules and regulations are not formed , from that time most of the bitcoin users and miners have started to shift their mining location to other place where they can mine legally and it is cost effective. So it can be temporary problem but it will not impact much.

Why would it go down?Yeah there are a huge percentage of bitcoin miners there in china but im pretty sure they can easily transfer their operation to another country it may drop for a while?but it will be good in just a few days

Yes it will drop for sure.
Because of the mining and exchanges are belongs to china. Surely hashrate will fall for 100 percent.

May mining business and exchanges from the other countries will capitalize the china's place in crypto world.

Understood, but I was also wondering if mining would drop at least temporarily, assuming the current miners in China did not make plans in advance as to where they were going to relocate to, and assuming also that they are going to relocate.  They won't give up a profitable operation like that easily, I don't think but it might take time to establish a mining farm in another country.

Yes, it sounds easy enough but sometimes reality doesn't match our idea of easy, does it?  But whatever the outcome, I am hoping China's stupid ban doesn't affect these miners, because the network does need their hashing.

I haven't expext that this will be true because, in the first place china have the biggest contribution in mining they have the most miners like bitmain. It was not easy to shutdown and if they do it i know that there is alternative maybe it will not bitcoin as my opinion. I will going to believe once the news becomes real and not only the create a money to take down the bitcoins price.

I would love to see hashrate drop for one.  Gpu mining at home is basically dead because bitmain and the other big boy companies bullied everyone else out.  Give the litle guys a chance for once.

What would mining company like Bitmain do with their mining devices? They cannot left it, just move to another country. The hashrate might drop in the first months but i think it will back to normal soon.

Realistically, even if bitmain where to stop mining, Bitcoin will never be able to be mine with GPU again with the current difficulty, at least, not profitably but someone could do it as a hobby even though they would most likely lose money with electricity expenses.

Hashrate will drop temporarily if everyone stops at once but other people will see the profit and hashrate will return to normal. So China or not, that doesn't change anything, much.