Bitcoin Forum

Due to the big blackout in China, the government has decided to ban mining and I have verified that, indeed, many mining facilities are closing. I have seen that there has been a nice cut of hashpower but, I have also found that some hosting centers have closed. This could be good because fewer miners would have more income.

Don't get me wrong, this news ain't good, but it ain't super bad either. But yet, I could almost guarantee that news sites would spin this around as something super critical. And once again, it would cause bitcoin to drop a certain amount. It's been like this since forever and I don't think it would change any time soon.

what i can't understand is: why did they decide to close? The accident is clearly an excuse.Is the news that America is banning btc founded?

Agree, maybe the market will suffer for some time but it's definitely going to be not a thing to worry about for the long-term because the mining can be moved to other places, it's just that it will take a lot of time to move it somewhere since China has a really big mining contribution.

We are no more children. I believe anyone in this forum are already old enough to understand that every bad news related to Bitcoin in china is only FUD. A drama, a fake news to dump Bitcoin. Remember China plans to create it's own crypto.

If you are a Chinese, just hold your Bitcoin. You don't have to give your Bitcoin private keys to your government.. Wait until the news back to normal.

Fun fact: It's almost guaranteed that the Chinese Communist Party doesn't like Bitcoin in general. I mean, China is all about having a tight sort of deathgrip-like control, ain't it? And Bitcoin is the polar opposite of what they want.

@jqprez
In regards to the question on the subject field, I don't think this time around it'll have a significant impact on BTCitcoin... From what I've read online, only three provinces ^{[Inner Mongolia, Xinjiang, and Qinghai]} so far have banned such operations and it appears that they're targeting "only" coal-based regions; In other words, other regions may continue their operations depending on how they're operating it ^{[not yet a nationwide ban]}.

this is true. It' s not just a bad news. Tested

Well this news has been in circulation for at least a week or two now, and as for the dent on the price? it has been price-in. Yeah, it could be that the hash power has been declining, I've even see reports that there hash rate has crash: https://bitcointalk.org/index.php?topic=5343187.0.

Just another set back though, for sure, many miners around the world are willing to fill in the void left by the Chinese miners, so the effect might be short term.

Or the Chinese miners already have connections from different countries to continue to operate the mining rig as part of their contingency plan If their government decides to shut down all the mining rigs in their country.
Now that their government found a solid ground to shutdown Bitcoin mining rig because of the energy consumption issues, this will somehow affects Btc price.

I have read the same news about  2 weeks ago I guess, that was the time when the mempool is so clogged up and Btc starts declining

   
Not that really much of an issue and if they do decide on banning miners then so be it but doesnt mean that effects would turn out to be permanent forever.
It would just make out some temporal effects and wont really last that long because recovery would really be always next inline and also we have seen on whats the behavior of China when it comes to changes of plans and decisions where they might be revoking it later on and its not really a surprising thing.They can do all sorts of things that they want but it cant completely stop Bitcoin.

I don't think there would be much of an impact in terms of price tbh. News was circulating for quite some time now, and the price remained relatively stable on the $35000 - $36000 levels during those times. To think that there might be such a huge change given the possible implications of this news and the price remains on where it was before it even surfaced. This goes to show that no matter the news, if it comes from China, it will always be shrugged off by the rest of the world.

It should've affected the price of bitcoin already but there's almost no reaction to its price and it's still recovering from the last correction that it has been. The news that is coming from China needs to be verified first and if you've verified it then the news would come quickly to the news publication websites and especially those news agencies in the mainstream but I still haven't seen any of them report this incident in China.

I think it will only affect the mid to small miners in China. For the top tier minings, they have already a business plan continuity here. Ever since their government releases that they are going to ban bitcoin mining in 2017-2018, they have sought other nations, even US as a viable next stop for them in case China shut it down for good. So for me, the effect will be minor. And then we are going back to normal once other companies and nation start to mine bitcoin outside of China.

I don't think that China will completely ban the mining operations because it has its good and bad to their own country as well, but if they decides to close then these mining farms will simply move to other countries and keep making profits.

yes, can  be. But where?

Maybe it will affect bitcoin in some back end way since there is a lot of things that Chinese mining is a big contributor but in the grand scale of things, I am pretty sure that these shut down is going to be a big deal because the mining can always migrate to other places although it will take some time or a lot of companies.

So far there has been no significant impact on the price of bitcoin, China will always add something good or bad to bitcoin.
today the power of bitcoin is not what it used to be which is easily swayed by some bad news, now investors have realized this trick.

Well, the impact on the market price is not instant, maybe you can just see it later.

Anyways,
This is not the first time that China bans crypto, they hated it so well and I don't think this could have an ending story. And it was not to wonder why the impact doesn't just come so fast because their people are already moving away from China just to continue mining before the government bans the crypto mining industry.

If we talk about price movement it can affect since whenever there's a bad news towards bitcoin the price suddenly fall but we shouldn't be worried since actually after the dump bitcoin price pump will follow and seems this is normal manipulation made by big players. For now I don't believe that incedent will happen since so far this is the weapon of whales to manipulate the market and its up for us to believe and who ever panic he lose.

Yes, China is not the only country that you can do mining. Now, you can read that these Chinese mining facilities are setting up in countries like USA or Canada or other crypto-friendly countries. If they don't want crypto, then, so be it. But it doesn't mean that the market will stop just because of them. Or bitcoin/crypto market will cease to exist just because one country is strict with it. Later on, they will change their stance on crypto.

Well, we'll find out in a day or so what happens when difficult adjusts up about 13%. Miners will be at max output, or they switch off and then we get even tighter on congestion for another couple of weeks. Then they jump back right in for the certain difficulty down adjustment after.

For as long as market keeps sideways anyway. So... Same same.

This will affect hugely on bitcoin, but it should only be temporary because miners could relocate and find a country that is crypto-friendly. Anything that is considered as bad news could really affect the market, and in fact, the bullish market is now gone due to bad news that was reported so far.

For sure they will and how many times we did experience this mining ban? They can always make some step but effects would be just temporary. 8)

They'll never ever learn that no matter what kind of decision they would make it cant really completely shutdown Bitcoin even how hard they do try.

People are way just too reactive that anytime these kind of news pops out they are been too afraid that the market would crash out.
If they cant plant on China then they can simply migrate into other place where Mining isnt restricted as simple as that.

mining is banned in CHINA. Each province will decide the timing to remove mining from their area.  Right now they just got notice so I would assume at least 30 days

A nationwide ban on BTCitcoin mining? Would you mind providing a "reliable" source in regards to that? I've tried looking for it on google but had no luck and lately, I've been reading a lot of conflicting news coming in/out of China.
^{- If what you've written here is indeed the case, then it could have some bad long-term effects [I'm referring to most of the ASIC manufacturers as opposed to its price].}

The situation in China has been unstable for some time for what I have read, this is something that no business will ever want so I think that what we are seeing is that those mining operations will relocate to other countries and then start mining again, even if they are not as profitable as before this is better than to have to deal with a government that does not know what to do with the miners, and while this is a problem during the short term overall this is good for the long term as China losses control over bitcoin mining.

bitcoin is currently over sold and the trend is side way so no matter what new thing comes out whether FUD or real it won't change that because there is no way to push it any lower and the price isn't ready to go back up again and we are left with disappointing market.
i'm curious why altcoins are still dumping since they should be pumping while bit coin goes side ways.

I am looking for a decentralized system and closing down mining farms is not good at all and that does not mean one less competition to earn mining rewards, you cannot think like that because the strength of the network is determined when more people are supporting the network.

That been said these shutting down will not affect the price as they will be moving to other locations and we do not have hash power issue right now as the problem is sorted when the difficulty was adjusted.

Many neighbouring countries of china that have relatively high electricity generation will definitely be fine, there are many smaller countries in there that are
quite developed and quite reliable. Moreover if they uses renewable energy by choosing the right place probably increase the odd of getting the permit.
Also chinese miner could just move to taiwan, I heard it's permitted there, remember mining in China is different than mining in Taiwan.

When BTC was rallying past $50K many miners were taking profits but later on they stopped selling, then when news of China cracking down came there were reports of some miners selling their coins.

In the end it doesn't really matter. The same amount of coins is released everyday whether there are more or less miners. Thats how difficulty works. Most likely these rigs will just be shipped to another country like Iran and they will be powered back up there. So the same miners will be back however they might have more expenses now since they had to relocate and might sell more BTC as a result however this should be very little.

This is actually a common reason why some countries ban bitcoin activities because it really can cause some problem such electricity outage and etc. But mostly based what i saw in some news like in other country they don't ban bitcoin wherein they need authorization just to minimise the activity to avoid such problems again .. So perhaps china will do the same as they are the most popular when it comes mining, And this is just a temporary news and not up to date in personal opinion.

China has the majority of the mining firms, and the same has made Bitcoin market depend on Chinese economy. Right now things have changed, and if someone is leaving the market then the vacant space is getting filled in no time by another person. This means if a Miner/large number of miners leave the network, there are many other waiting to get in. So this won't make a big impact on Bitcoin market. Maybe there'll be short term impact.

Not just bitcoin Mining,  all the mining. I have some friends that are my source with miners hosted offline

Majority of the mining farms were located in China but how come that means that the Bitcoin market is depending on the Chinese economy , this is not a right statement and most of these miners will be moving outside the country and we are well aware that they do not have any cryptocurrency exchanges and when they had they usually fake their numbers and tried to manipulate the market for a long time.

Just right before Elon Musk announced that Tesla will be accepting Bitcoin again and this has been circulating around already. It's seems like it's not a FUD but it would dramatically affect the Bitcoin market although we haven't seen a negative effect yet, I guess this is due to Elon Musk announcement.

How will the miners make a solution about this? Maybe they have to transfer to another country since their miners are banned due to the massive blackout but if they won't then there would be a slight effect on the market anytime soon.

I heard there was a nuclear accident at a new generation Chinese power plant. Didn't the blackout start from there? Then there is also to add that it should not only deal with mining rigs but also pools. Let's not forget that f2pool and poolin, just to name a few, are Chinese.

Absolutely no effect in my opinion.

BTC's long term health does not depend on Chinese interest or miners. This has been proven over and over again.

The same people who are concerning themselves with the current dump and attributing it to Chinese bans are the same ones who panic sold in 2017 when Chinese regulations tightened and yet BTC went up to 20k shortly after. People are really myopic and don't appreciate the true nature of decentralisation - to combat precisely these bannings.

China is a country that has long been home to more than half of the world's bitcoin miners, and it is estimated that almost 75% of the world's bitcoin mining takes place in China and with so many miners carrying out mining activities it certainly consumes a lot of electricity supply, because the bitcoin mining process itself requires an energy source which is intensive enough to generate new coins and record all existing digital token transactions and certainly have an impact on China's electricity needs in other areas that may require more electricity.
Now the Chinese government has expelled many miners from the country and most likely the miners will migrate to Texas (United States) because it is said that Texas has the cheapest electricity in the US and even the cheapest in the world.

It could but the effect was not huge and it recovers back shortly. Why? Because we are not only relying on China, a lot of countries that have crypto mining business and they are enough to cater to the huge number of transactions without China's support. And to know what, we are not considering China as a part of crypto development, maybe before but not now.
For how many times that they are Banning crypto, banned those mining companies, there is nothing to expect with this country.

I think the opposite, one of the great things about mining bitcoin is that it is a portable source of consumption of energy, one of the problems with renewable sources of energy is that you need to be at a specific place to obtain that energy and many times there are not cities there so you need to transmit that energy long distances and this has a cost, mining allows you to consume that energy at a lesser cost and to develop more of this clean energy and yet people do not see this and think that bitcoin is a danger to the environment when this is clearly not the case.

Bitcoin getting rid of china is something I always loved, it is something we should always cherish, it is something we should be happy about, it is china for Christ sake you can't even say "president is a bad person", you will be jailed and even worse you could be killed, just for saying that, I know I do not live in worlds greatest place but at least I can say my president is a bad person, or the party that is in charge is a horrible party, I can say that.

Now, if a nation that is ruled by dictatorship keeps the control of bitcoin market by keeping the miners at bay? That would be horrible and so far it has been sort of like that, he wasn't controlling but it was under his control which is why I think it is quite good that we do not end up more and more miners there, even USA (which has higher electricity rate) has more and more miners because you are more free there.

That nuclear powerplant is in Guangdong, only there provinces matter for bitcoin mining and those are Inner Mongolia, Xinjiang and Sichuan.
Besides, there was no blackout reported and I don't even know if they've halted the reactor at all, oh, btw, the reactors are french made, China has only one home-built PWR reactor.
https://www.reuters.com/world/china/what-happened-chinas-taishan-nuclear-reactor-2021-06-15/


Nothing recovered and it won't be short at all.
The difficulty a month ago was 25.05 T, then it dropped  -15.97 % to 21.05 T  then again - 5.30 % to 19.93 T and now we're looking at another -10% drop.
Overall a 30% drop since May and lower than in October a year ago when BTC was at 10k.
And you have the wrong idea about how the number of miners influences the number of transactions, and the fact is that they don't!

China banned thousand times already related to cryptocurrencies so this is not going to affect anything and I don't see there is any drop in the mining operations or need of high hast rates since the number of unconfirmed transactions are less than 5K in the recent times.

The prices are going to go down but it will be a temporary thing because people will move on and the mining companies that were shut down in China can relocate to other places that have a more relax regulation and no looming Damocles' sword is hanging on their head for mining bitcoin.

my idea is: low hashrate low value. Cause the btc price go up when the hashrate go up

this is the fundamental problem of china. Very little transparency. Even listed companies give very little information and this is what makes investing in China very risky. I believe the source is reliable but we await news

What would you expect from China? For a communist type of country then all the things that would be against into their interest would be definitely be gone or would be banned and when the time that they do saw that they can benefit again then they would revoke such decision and allowing it again.

This isnt the first time on China had been playing with this crypto market and since from those old years where China do really loves on stirring up the crypto scene and this is why anytime they do make out decisions then it turns out to be a casual situation already.

The community doesnt already get surprised and just letting them on all the things  that they do wanted to do.We dont really care at all.

China is probably seeking to promote its own home grown alternatives to BTC where it has so far failed to corner as a market or in mining.  I believe they are incorrect to think they can do better but who will argue with the Red Army so let them try, the dynamics are natural not dictated.   Less miners in China is probably a positive for the world and Bitcoin, perhaps China will inadvertently advance crypto by their attempts but the first moment I hear they intend anything new as a centralized politically controlled system I will know enough.

the paradox: China close the miners and El Salvador adopts btc as legal value

They are pushing for their CBDC which is the Digital Yuan which is I think is the main reason why they are cracking down on cryptocurrency and the mining of it, they don't like competition which is integral in my opinion to the growth of a digital currency.

it is clear the closure of the BTC mining factory in China will greatly affect the price of BTC, the Chinese government directly prohibits crypto and as a result the public's interest in crypto will decrease, purchasing power decreases and is likely to bring about many changes in the market.  Moreover, China is a fairly large contributor in BTC mining.  Even though the reward between miners is getting bigger, but with bad market conditions, the btc that is dumping results in even less profit.

I think the news is already price-in, even if we hear like everyday news coming from China that they have been 'forcing' to cut electricity for the miners, the price is still going strong above $35k. So investors are not going to bite and sell off because of this news. We are tired of bad news coming from China so for me it's already price in.

And for the miners? they can still do what they want, specially for big mining farms, get out of China, go to friendly countries, used your profit to make more profit. They don't have to stop their business just because their government is clamping them down.

This news can't have a permanent affect on Bitcoin price first of all. And secondly, this is more related to Bitcoin miners rather than Bitcoin price itself I think. They will have to move their mining rigs to another country.

what did people expect from china? Years ago the Chinese government made their position in relation to cryptocurrencies very clear, today people should not be surprised by these decisions because they already knew that in the future this would happen, the Chinese government never gave any hope of change in relation to seeing well the cryptomedas. we are talking about the Chinese government, that government that all of them must be controlled, all things must be Chinese, an anti-democratic country that restricts people's rights. could not expect good things coming from china.

MIning farm shutting down in China will somehow have an effect on Bitcoin confirmation time until the difficulty adjustment on the next block.  Aside from that, I don't think it have a huge effect on security.  Though I think this will have a huge effect on the Bitcoin market price as we see when this news comes out, Bitcoin fall from $50k+ to $30k+ due to FUD had been spread that changes the market sentiment.

You just described all governments in all countries in all history, not just Chinese government!
Besides it does not surprise anyone that some government in a country did something that was against bitcoin, they have been taking actions against bitcoin for years now all over the world. What surprises us is that people still believe the FUD that tells them "China controls bitcoin" so that they can continue that with "Power outage in China == bitcoin death" and then they panic sell!

You can see some data around the web about 24h change hashrate:
Antpool 16274 phash -29,22%
Poolin 12068 phash -17,46%
Binance pool 11581 -19%
Btc.com 12530 - 14%
This is the data to 19 jun 2021
Seems to be in sept 2017 with the ban of the trading

We must always try to look at any any positive angle we can from any news and this is one of them, China due to being the country that had the most miners always had a huge influence over the market, if those mining operations are closing down then it is unlikely this is going to be forever and instead those mining facilities are just relocating themselves, so this is good for bitcoin as the dominance of China over that aspect of the network finally begins to disappear or at least it is not as strong as it is now.

https://www.btctimes.com/news/pboc-orders-banks-alipay-to-cut-off-bitcoin-linked-transactions
surely china is pushing to bring btc elsewhere

Is it that easy to relocate the mining operations? China is the preferred destination, because they manufacture nearly all of the mining rigs, and also due to the fact that electricity is very cheap there. If the miners relocate to a country such as Mongolia or Russia (where the electricity costs are relatively low), they need to first pay the import duty on mining equipment. And in these countries, the bureaucracy and red tape are big issues. Therefore getting a permit to set up such operations may take a lot of time.

there are a lot of places in the world. Eu -Us-africa-asia.
surely, if they reposition themselves, the miners will never go to china again. I'll tell you more: given the lack of reliability of the Chinese people, this will also affect other activities.if the electricity will cost 10 cents instead of 6 it means that btc will rise and will be produced with clean energy (solar, wind, hydroelectric)

It doesn't matter because if the mining stops in China, pretty sure that a lot of people from different countries are going to replace them albeit slowly so worrying for the long-term isn't the best thing to do.

the question is the time. It' s not easy and fast create a farm with low cost energy.

You have verified the banning but you don't even give a link about this here? yeah that is fair  ;D

due to this decision the Market starts to full down and even make bitcoin fall to below 30k once more.
Actually a state in US are planning to cover this mining losses from china and willing to adopt those miners inside their city .

i just forgot what state was that. if I'm not mistaken that is Texas ?

I think it is fair to assume that relocating a mining operation is not something easy to do as not only you need to relocate the equipment but the people that took care of the mining operation and not everyone will be willing or be able to travel, however if there is a ban or at least less tolerance to that kind of activity in China then you do not really have any other option but to do it despite the costs this will generate as the only other option is to close definitely.