Bitcoin Forum

Bitcoin’s price tumbled Friday following an intensified call from Chinese authorities to crack down in mining of the cryptocurrency.

In a statement from Chinese Vice Premier Liu He and the State Council, authorities said tighter regulation is needed to protect the financial system.

The statement, released late Friday in China time, said it is necessary to “crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field.”
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So just another rehash of the news yesterday? Man, China might as well just crack down on Bitcoin every 10 minutes just so we can get done with it.

Don't wish for that because China's persistence is going to be something that is pretty formidable and stupid at the same time. Also what is the worse thing that can happen if they cracked down on mining?

So just another rehash of the news yesterday? Man, China might as well just crack down on Bitcoin every 10 minutes just so we can get done with it.

This time is a press release:
http://www.gov.cn/xinwen/2021-05/21/content_5610192.htm?ivk_sa=1023197a

Things are getting a bit uglier, of course, this committee is nothing when it comes to the legislature and as far as Google knows it's a mechanism of coordination, so probably what they get done in one of their meetings is just giving out guidelines that might or might not be put into laws or enforced.
But at the same time, that's also one of the politburo committees, and the guy running it is quite high up 4th vice premier, so I could understand the market moves at hearing those.

Going into conspiracy theories I'm starting to wonder if this drop in hashrate is not made by some miners fleeing danger zone, the current 15% drop we're experiencing makes no sense economic-wise, even if we round the price to 35k.

Anyhow, I'll wait a bit anxious myself for some tweets from guys known to run miners in Xinjiang and Sichuan, if they ring alarm bells, then we're going full bear season, if not, just the usual china dip.

I was just wondering why Bitcoin price has gone down below $40k again. And it looks like this is the reason. China is still continuing to manipulate the market by its recent actions. And I think that should be enough. They don't have another thing left to damage the market anymore.

Can you please name those miners?

China is completely a big joke, nothing different.  ;D  First they banned cryptocurrencies AGAIN and now they are cracking down on crypto mining. It is like they are at war against cryptocurrency industry.

China is completely a big joke, nothing different.  ;D  First they banned cryptocurrencies AGAIN and now they are cracking down on crypto mining. It is like they are at war against cryptocurrency industry.

But the thing is that , China is serious or not?

Well, it is possible and perhaps in my own opinion, --there is a big whale there who also secretly manipulating the market.
Not so well to be done for China. I don’t think their decisions towards bitcoin are reasonable. Let us just say that their agendas consider bitcoin as their competition but I don’t think this is the best way to handle it. This is too stupid, I  wonder how miners reacted to their government’s decision. I really find it disappointing honestly. But I think we just had to move on, the government really has the power to stop bitcoin on a national scale, and they just did like many attempts already. But it does not mean that bitcoin’s rise will stop here. Sooner or later, Bitcoin will recover and their yuans that they are very much proud of will soon be gone.

So more nonsense from the statist authoritarians in China today.  Anyone mining in China should move their (or at least a large percentage of their) miners out of China. 

The thing to remember is that it is irrelevant where mining occurs.  At worst, it slows blocks for a while, and makes it easier for other miners to win the blocks.



https://www.cnbc.com/2021/05/21/bitcoin-falls-after-china-calls-for-crackdown-on-bitcoin-mining-and-trading-behavior.html

China didn't want to content themselves with only banning cryptocurrencies. They wanted to ban mining also. I can't say that I'm surprised about this. When it comes to China, everything is possible.  ;D

I am more and more convinced that China is trading the cycles that it helps produce. Maybe they bought Bitcoin for $100 billion, now do everything they can to drive the price down, refill their bags and let the market build up again. They threaten so often but still a major part of the industry is located in China and probably will always be located in China.
They won't the whole mining industry including the chip production and so on. I will only believe it once it happened.

China continues to damage the market with its actions recently. They banned cryptocurrencies first and now this happens. There were already some rumours that China would lose its dominance in Bitcoin mining. And it starts to come true.

China is banning Bitcoin every year so I think it would be a good idea to have special Bitcoin Ban day we can all mark on our calendars and celebrate annually.
Look at it from positive side, if they ban and restrict Bitcoin mining that means that pools from other countries will have bigger share and there will be no more fake news how China controls Bitcoin.
Bitcoin is like a living organism and it adapts to whatever conditions are in the world with regulations and everything else, but I think Chinese will just move everything underground and continue their business as usual.

even this has several times China said and made threats that lead to crypto, of course we can be sure that there is a certain load behind it. because we know that the biggest mining sector is in China. Is it possible that China will do that because he does not know, obviously not possible. but there is a charge behind it that will clearly be seen, because this is the umpteenth time they have done that and returned to normal as usual and as if nothing happened that was very worrying.

China plays a very important role in crypto and clearly has a huge influence when it comes to actions that are against reality. although they are very disciplined and obey the rules that may be made, but I do not believe it.

It's a good opportunity for mining companies move their businesses to another countries and decrease the total mining power China is responsible for. It will give a lot more stability for bitcoin if mining power isn't concentrated in one only country, especially a country ruled by communist dictators like China. It's also a chance for smaller countries which need to increase their income to attract these mining bitcoin operators to their territories.

Read the post above yours by Kakmakr to understand.

In short:
China is developing their own digital currency. It's not going to be a decentralized asset like bitcoin is and it's not yet clear whether it will be blockchain-based or not. From some articles I read in the past, they are already trying out their digital coin in a few Chinese cities. Not sure if they consider those trials as successful or not.

It's pretty obvious that they want their citizens to be disgusted by bitcoin as much as possible to increase the adoption rate of their government-controlled digital asset. 

China’s push for the digital yuan will boost demand for cryptocurrencies, according to an analyst at BK Asset Management, citing that the Chinese government wants “absolute power” over the wealth and income of its citizens.

This is interesting.

So there has been some news regarding the "China bans Bitcoin" that has been doing the rounds and that contributed to the recent dumpfest.

Apparently, the CCP is actually serious this time so the Chinese based miners have all shat their pants and were major sellers during the dump. Not only that they are also now either aggressively moving their operations or selling their mining equipment on mass, at firesale prices as well. We are seeing another significant drop in hash rate right now so it might actually be true, next difficulty adjustment (29th May) is set to be about a 15% decline.

If this is true, this is the best news we have received in a long time, mega bullish medium/long term. With China out of the loop, the China and environmental FUD will cease, putting some of the final nails into the critics coffins (they'll have to go back to talking tulips). I also beleive that if this is true, it will mean an approval of the ETF as, I believe, one of the larger concerns was the influence of China over the asset.
Nic Carter seems to be the most up to date on this, here are some of his tweets.

https://twitter.com/nic__carter/status/1396538897077841923 (https://twitter.com/nic__carter/status/1396538897077841923)

https://twitter.com/nic__carter/status/1396553898454835201 (https://twitter.com/nic__carter/status/1396553898454835201)

https://twitter.com/nic__carter/status/1396652765426987022 (https://twitter.com/nic__carter/status/1396652765426987022)

dldr of what he nic was talking about in the pr3vious twitter link https://twitter.com/mikekilinski/status/1396666279042314244 (https://twitter.com/mikekilinski/status/1396666279042314244)

I haven't watched this one yet, but this should give a good overview of the Chine situation https://twitter.com/nic__carter/status/1396683091826069507 (https://twitter.com/nic__carter/status/1396683091826069507)

hashrate perscentage by country in 3 chinese mining pools BTC.com, Poolin, and ViaBTC https://cbeci.org/mining_map (https://cbeci.org/mining_map)

Well, it is possible and perhaps in my own opinion, --there is a big whale there who also secretly manipulating the market.

Not so well to be done for China. I don’t think their decisions towards bitcoin are reasonable. Let us just say that their agendas consider bitcoin as their competition but I don’t think this is the best way to handle it.

I wrote this in the Wall Observer thread, relevant for the conversation here

As you can see the news came in late hours on the 20th but already by the 19 we were down -13% in hash rate combined for over a week.
So I would rather blame this swing on the price drop and the end of relocation for the rainy season than what he is babbling there.

The digital Yuan is happening and from this report below it seems like there will be an
increased demand for crypto when it is fully implemented. A lot of people will be unhappy
that another part of their privacy is eroded away. The Chinese authorities know this
and are taking steps now, we will find out how serious those steps are soon enough.

https://news.bitcoin.com/chinas-absolute-control-digital-yuan-boost-demand-cryptocurrencies/

From time to time, news comes from China about the problems of miners with bitcoin mining in this country. Moreover, this has already been happening since 2017. Let it be better that mining is really completely banned there so that there is no such constant negative information. In my opinion, then it will become much easier. Bitcoin mining will still take place in other countries. Therefore, you should not worry about it.

Another alternative to banning is to move their mining rigs to more crypto friendly country...

Moving to a new country isn't as easy as it sounds. These people have a life in China, family, children, friends. All that can't be abandoned over night just like that. Not to mention familiarizing yourself with the regulations of the new country, finding an appropriate and cheap location to set up your farm, and physically moving your equipment from point A to point B. All that takes time and money. There is also the language barrier, cultural differences to consider, etc. Of course it's doable when someone forces you into it, but I believe that's not what the Chinese miners want to do.   

Moving to a new country isn't as easy as it sounds. These people have a life in China, family, children, friends. All that can't be abandoned over night just like that. Not to mention familiarizing yourself with the regulations of the new country, finding an appropriate and cheap location to set up your farm, and physically moving your equipment from point A to point B. All that takes time and money. There is also the language barrier, cultural differences to consider, etc. Of course it's doable when someone forces you into it, but I believe that's not what the Chinese miners want to do.   

Moving to a new country isn't as easy as it sounds. These people have a life in China, family, children, friends. All that can't be abandoned over night just like that. Not to mention familiarizing yourself with the regulations of the new country, finding an appropriate and cheap location to set up your farm, and physically moving your equipment from point A to point B. All that takes time and money. There is also the language barrier, cultural differences to consider, etc. Of course it's doable when someone forces you into it, but I believe that's not what the Chinese miners want to do.   

But it is good for other miners in other parts of the world or should I say, some of these chinese mining companies are already going to other countries like BIT Mining. So if China doesn't want them, they can always set-up their mining facility outside of their country. It is not a loss for these mining companies, but loss from China.

https://www.coindesk.com/chinese-bitcoin-mining-company-invests-25m-in-new-facility-in-texas

China is not the only place that they can set-up their mining facilities, there are other parts in this world that will gladly accept them to invest on their area of jurisdiction. Sooner or later, China will realize that bitcoin will survive even without them.