Bitcoin Forum

In my opinion, although China's new policy of prohibiting mining will cause the price of Bitcoin to fall in a short period of time, but for a long time, it is good for the development of the Bitcoin ecosystem.

Currently, China has a large number of Bitcoin miners, and most of them join the industry just to make money. I don't know how miners in other regions will deal with them after they get bitcoins, but in China, in order to pay electricity and other fees, most of the bitcoins will be sold directly on exchanges. This will put a lot of pressure on the price of Bitcoin. If China completely bans Bitcoin mining, this part of the mining machines and computing power will be transferred to other countries, or some long-term holders. As far as I know, every day China sells bitcoins worth tens of millions of dollars. Without these sellers, the price of bitcoins would be more likely to rise.

If the mining machines and computing power are in the hands of Bitcoin's HODL, it will be beneficial to the entire Bitcoin ecosystem. The Chinese government will eventually realize that Bitcoin cannot be banned, but the lost mining machines and computing power cannot be recovered.

The news is kinda meh. Yea, temporary price drops obviously because the word "ban" sure affects the price a lot, but it really shouldn't change Bitcoin's fundamentals. Yea sure, we had a drop in hashrate, but it doesn't really put Bitcoin anywhere close to a sort of "danger zone" in terms of security and decentralization. If anything, China banning mining actually helps us get over the classic "Bitcoin is centralized because 50%/60%/70%+ of miners are in China" FUD. 🤷‍♂️

Not to mention that these miners are just going to hop over to other countries.

https://technode.com/2021/05/24/crypto-mining-moves-to-north-america-as-china-cracks-down/
https://www.channelnewsasia.com/news/business/china-s-crypto-crackdown-speeds-shift-to-central-asia--north-america-mining-14890302
https://www.globaltimes.cn/page/202105/1224321.shtml

It could break down China's total monopoly, as there could be nations specially in Europe can will continue bitcoin mining. But then again, bitcoin mining is a huge business, so I doubt that those mining companies are just going to sit it out and shutdown their company. For all we know, they've already relocated outside of China but this time upon hearing the news.

Forgot about China making a U-turn, they've been anti bitcoin for the last 4 years and just promoted altcoins and their digital Yuan.

Agreed, just like @mk4 said, it does not affect and will not correlate to the fundamental Bitcoin. Personally, in fact, it will give attraction to the mainstream. Bitcoin has been said is dead multiple times, and also China was "banning" mining since a long time go. Thus, it gives a realization to a lot of people that Bitcoin cant be controlled by a singly entity even an governments. Nevertheless, we must maintain this decentralization based on the fundamental of Bitcoin. Since a privileged early bird in these cryptocurrencies has a probability to be an elite cryptocurrencies community.

Knowing China, I am pretty sure that they are going to acquire those companies for themselves and do the bitcoin mining themselves. Hopefully, the companies can get out of mainland and relocate but the language barrier is going to be a problem. I do agree that the ban is good for bitcoin, the prices go down and the people can get in at low price.

Yeah. It dropped the whole market but it'll adjust. The mining will be spreaded in a lot of countries instead if China and i think it may help to blockchain's work and be healty for market.

China banning mining is in itself good, considering that the centralization of mining in the world would soon be lifted, and will be able to spread out on different parts of the world and breaking—on paper—a possibility of a 51% attack before it even begins. The short drop in price caused by the news is pretty expected to say the least, although it's still something yet to be seen whether the current trend will persist or not. Some may capitalize on this, and some may take it as a bad omen and halt trading temporarily.

I'm honestly really sick when I hear anything in the context of China & Bitcoin, because I have a feeling that this link is like a massive weight that is constantly pulling Bitcoin down - and China FUD usually always appears when it comes to destabilizing the crypto market. In my opinion, it is completely wrong that China has ever been so involved in the world of cryptocurrencies and has become such an important factor, given that Bitcoin represents decentralization, and China on the other hand represents just the opposite, centralization and communism.

The best thing that could happen is to China completely ban mining and set some reasonable deadline within which such activities must cease. All those involved in such operations would have enough time to relocate, and everything would happen gradually so there would be no drastic impacts on the network.

Unfortunately, this ban only applies to one region - which means that in the future we can expect China to play a major role in the crypto world.

It is really for good or this is just another fake and negative news coming from the Chinese government?

Bitcoin's bull run history:

2013 - they said they gonna ban bitcoin mining
2017 - same statement
2021 - same statement

So I would say that we need to take everything with a grain of salt news coming from them. It's pretty obvious that during bitcoin's historic bull run, this kind of statements always floats around and so far we haven't see any concrete evidence, everything is hearsay.

China isn't just blocking Bitcoin. much more: Google, Facebook, Youtube, Twitter, Instagram, Reuters ... In China it is not clearly regulated whether the use of a VPN is prohibited. It is said that the VPN providers are allowed to offer the service with docs / logs in China, because if necessary it can be checked which user it is.

What is blocked in china: Klick (https://en.wikipedia.org/wiki/Gesperrte_Websites_in_der_Volksrepublik_China)

It will take a long time to adjust with a lot of mining taking place in China, a lot of people are going to take their place and it is difficult to replace them even if you are a company since the Chinese mining are also a company. It is healthy for the market no doubt and I like that the prices are going red because it removes the weak hands and gives opportunity to other people that wants to get in at a low price.

Just because China has banned Bitcoin, nothing fundamental will change about Bitcoin. Yes, the price has dropped really much but it's totally normal for a volatile currency after this kind of incidents. But Bitcoin will still continue to grow eventually.

Do you really believe it's totally banned according to what they said? I doubt that. There's a possibility it is being regulated by their government already.
You want to control the market? Be the number 1 Bitcoin mining country. With the news they released its possible to create profits out of it.
China is a booming country and every profit will be crucial to them to start the jump to being the top country in the world.
I am 90% sure they can control the media of what news should be leaked out.
At some point we will see Bitcoin rising again. By then, will we think that China didn't really ban it? And if they also did, Bitcoin should not be in $30k+ now. Much lower.

See, the China government or any government simply doesn't care if any individual or group of individuals are making money by mining or something else, and banning them will harm those miners etc, because at the end of the day, the government will see its profit and loss and vision for future. As you said, sure, the computation power will move somewhere else but so can the people who might leave their country had they been making lots of amount, I don't think they will simply quit! But yeah, I am getting what you are implying here, but the chances of long time holders mining those void coins are so less!

It is quite realistic, these miners will move their activities to other countries. they do not have to go and live in other countries, it is easier to just invest in already existing data centers. For example, the nearest country is of course russia, they can easily invest there. in russia, as we know, the government provides good discounts on electricity for the organization of mining, especially given the good relations between the two countries, they may well conduct their activities in russia.

Forcing miners to shut down is not good for any ecosystem, we are a decentralized market and having miners in different location is always better than narrowing them.

The miners have invested heavily and it is not a small process and the electricity charges and maintenance charges are really high and what is wrong if they are cashing out to maintain the process. If you are too concerned about miners selling coins you can spend millions to start your own and then plan on holding as much as you want. I do have a sense of respect to these miners as they were willing to spend millions and take the risk building huge farms which helps in the security of the network and there is nothing wrong in maintaining with coins they earn.

A dream scenario where these mining farms are spending millions per month to maintain the farm and they do not cash out their coins to cover their expenses, how wonderful it would be ::).

Are we going in that direction though? China has banned exchanges and everything else but mining. For all we know, it's only Inner Mongolia that enforced a full ban, including mining. I think that if China wanted to ban mining activity, they would've done it by now, what's there to stop them?

In any case, if they indeed prohibit mining, this activity will simply be moved someplace else, and the localization of mining is of 0 importance in regards to the price, so you're right, the effect will only be short-term.

In the long run, he is beneficial to the Bitcoin market because he can break China's monopoly on Bitcoin. Although there are short-term fluctuations and declines, this will prompt countries to adjust the Bitcoin ecosystem, which is conducive to the long-term stability of the Bitcoin market.

It will probably take a really long time given how large bitcoin activity in China is. I agree that it will be beneficial but I am sure that people are still going to panic over this fluctuations but that would be alright since we are going to see a better pump in prices when the time comes.

Best news here is that we can finally make Bitcoin news stay away from China, I can finally stop seeing China and Bitcoin both in the same sentence for now. Hopefully, it's gonna last though. I do hope that it doesn't hit the mining industry that bad (hardly doubt it, but hey who knows), and that China doesn't suddenly make a huge 360 about them banning Bitcoin.

A drop is quite natural, heck we experience drops every day even without any china news, and it still goes back up in a matter of hours or days. It's quite natural. Just seeing that it didn't drop by that much goes to show how much of a minimal influence the news actually had.

During the past several years, I have seen several posts here claiming that China is about to ban Bitcoin trading and mining. And on every occasion, it was proved to be fake news later. Even I am not comfortable with China accounting for the lion's share of mining hash power. But despite that monopoly, there have been no attempt by the mining pools to user their monopoly for anything that could harm the reputation of Bitcoin. And I don't think that the situation will get any better, in case the hash power gets distributed across the globe.

if some day China banned bitcoin for reach it would be awesome for bitcoin because it would put an end to one of the oldest FUDs that we keep hearing every time bitcoin price rises. then market manipulators have to think about something new because bitcoin would be banned already in China and they can't reuse it again.

but since China never bans bitcoin, the manipulators keep using it again and again and newbies fall for it every time :P

Neah, Europe is not a place for large mining farms.
You can still get pretty good deals for medium business, as I've managed to get the last motnh, where you can stick up to 10 miners but no way in hell you're going to get 3-4 euro cents when we talk MW not home business KW, even in the eastern parts of the EU the normal prices have one over 10 cents. Imagine the uproar in Germany when the population paying 20ecents/kwh finds out miners are paying so little. And if you think Iceland, unfortunately, all of Iceland barely produces enough energy to host 10% off all the mining.


They are no providing discounts for miners, they are simply allowing them to consume cheap energy Russia has in excess in some areas, once the mining operations there will start to put a strain on the grid they will simply turn the tap off, it makes zero sense to subsides electricity this way, the gas price in Venezuela should have proved a lesson for every state that throwing away money doesn't lead to prosperity. And this scenario happens in China, nobody cared about mining till it got too big, the in Iran as they didn't care either till it started causing problems and Russia will be just like the others when it grows too big it will kick them out.

It's really bad timing, ironically the dump in price is keeping the energy consumption at bay, if the price skyrockets over 100k this year or even 200k before the halving, things will start getting nasty, really nasty.

China ban mining is a good thing for the rest of the world to have an advantage over China. Thanks for the self sabotage China.

Semiconductor shortages could make it harder to replace hash rate lost off the china ban. If semiconductor production associated with GPUs and ASICs fall. Simple supply and demand says semiconductor costs associated with crypto mining rigs could climb. In addition to this, we have manufacturers of SSDs / HDDs threatening to void warranties if storage units are utilized to mine chia coin. This trend if expanded could apply further pressure to the crypto mining industry in the future. Not to mention the potential of ASIC manufacturing in china having a relevant impact.

Those trends aside, it is possible china's mining ban will have only a limited short term effect. As china's previous bans relating to bitcoin were temporary.

Crypto mining being centralized in china over a longer period might have made it possible for more long term negative effects. In that china could be doing HODLers a favor by exiting the market. And passing the reins of influence on to others who will try to fill the vacuum left behind.

Tax rates are way too high for Bitcoin mining operations to be successful in the EU (at least in the old EU states such as Germany and France). To start with, the electricity rates are way too high. And then the mining hardware is extremely expensive due to the very high import duty. And the corporate taxes are also some of the highest in the world. There are countries such as Estonia, where the electricity is cheap (around $0.06 per KWh), but even there the taxes are quite high. And if I am not wrong, Germany has the most expensive electricity prices in the world ($0.36 per Kwh).

What is unrecoverable computing power? The sale of equipment was in the minds of the miners. They only sell old equipment and make sure that new equipment with better mining performance, more energy-saving will be replaced.
That is also the reason the hash rate always increases over time. Chinese miners are very aware of their profits from mining and the Chinese government is just a liar. They have been quietly supporting miners for years so they will continue to do so. Prohibited statements are blindfolded.

We have been hearing about china banning bitcoin for years now, and every time the rumor comes out the price drops and after a while things go back to normal, i don't think that china is actually able to completly ban the mining of bitcoin, sure they can lay down harsher crackdown on it but poeple would still do it because of how large it is, i feel like the news about tesla no longer accepting bitcoin due to enviormental impact has more effect on the price than china banning, because if you think about it the miners that we will lose from china could be easily replaced but a big company saying that bitcoin is bad and will no longer use it do to bitcoin mining having bad impact on the enviorment is gonna take a long time to chnage that idea.

Anytime we see news of cryptocurrency we should understand it deep very well. Some of the news happen in another way but will be reported in another way to take advantage of the market too. The China banning to me can be like regulations. It might not mean that the whole building is brought down or the mining centre closed down.

The news about China's Bitcoin mining ban has been frequently mentioned many times over the years and the truth is that only miners know it. The Chinese government has quietly let miners mine Bitcoin for years, and they know how beneficial that can be. Bitcoin mining equipment is largely made in China.

The problem of the computing power of the Bitcoin network may decrease but then it will continue to increase because Bitcoin mining is very profitable. Part of the new devices coming out has more efficient mining technology so I believe the hash rate will always grow.

There is a reason why most miners are in china, it's the matter of cost, and china is the suitable place. although of course, moving it is doable, but it doesn't seem as easy as said. We need more time again, to make things back into normal if chinareally bans all mining in that country. Finding new places and transfering them won't be done just in a blink of an eye. although it might be good to do since we don't know when china will really make an act and the situation goes worse. However, i think we shouldn't worry about it too much.

A ban in crypto mining in China will give more problems towards Bitcoin other than a price fall for it. We are talking about more than 60% of Bitcoin's hashrate suddenly disappearing temporarily and this will cause a lot of problems with Bitcoin's blockchain network resulting to unconfirmed transactions and higher fees just to complete one. Asking if a ban will realistically happen I can say that it has a small possibility to do so because for one if this is all about Inner Mongolia's decision to ban mining I don't think this decision will spread out to the other regions of China.

China's ban on mining is good in itself, and the market ahead is not so good, but I believe it will get better in the future. It will break the number one power country and spread it to North America, which is beneficial to the blockchain.

Since Chinese mining pools currently account for more than half of the world's total Bitcoin mining capacity, when the Chinese government issued a ban on mining, it immediately attracted widespread attention in the industry. However, the impact of China's ban on Bitcoin mining may not be so severe. Although a large amount of computing power and some of the largest mining pools in the network come from China, in fact, China is not the core hub of Bitcoin network nodes. In fact, only 3.18% of Bitcoin network nodes are located in China. If the regulator finally decides to issue a ban, then China's computing power will naturally be redistributed to other countries. At present, mining is mainly concentrated in China because China's electricity bills are relatively cheap, but countries such as India and Indonesia can also provide the same average electricity prices.

Bitcoin mining is a decentralized process. Miners leaving China's large mining pools will not have much impact on Bitcoin mining. What's more, some domestic mines have moved their mining machines to Iran and other Middle Eastern countries that generate electricity from natural gas resources to obtain cheaper electricity prices. In this process of circulation, the mining industry, which was once criticized as centralized, has gradually shown a trend of decentralization geographically due to cost and profit considerations. Although the ban on mining will undoubtedly have a huge impact on China's mining industry and is likely to kill the entire industry overnight, the global Bitcoin network will continue to move forward. Miners’ shifting positions may bring some minor problems, and mining costs may increase slightly in the short term. However, in the long run, China’s ban on Bitcoin mining is unlikely to cause serious problems to the global Bitcoin network.

These stupid Chinese, or rather those sitting in government. They have repeatedly expressed themselves about the ban on m. But nevertheless, this issue was constantly postponed to later. Especially since they're also draining bitcoins... ohmm, there are no words