A Crypto Blessing: China’s Plan to Ban Bitcoin Mining Will Work Wonders

[Yakamoto]

I kind of hope this happens because this will give the hobby minres at home a chance to make some profit.  Right now the giants like Bitmain are sucking every drop of profit from this market leaving virtually nothing for the little guys.

Unless you have the most advanced mining equipment and you join a pool then you have no chance of making profits, bitcoin mining stopped being the field of hobbyist long time ago, Chinese miners only have to move to another country with cheap electricity and everything will be back to normal for them and if they are smart they are not going to do all of this at once which means there is not going to be any window of opportunity for miners like you.

I would say that most miners won't leave their country unless mining is the biggest source of income that they have, and the only one sustaining them. It is *possible* that miners will move their operations out of China, but I don't think most will if they have another form of employment. They may move the equipment out of the country and have it managed by international members, but it's a lot harder to move citizenship between countries than you'd think. Doing all of that just to keep mining Bitcoin is dicey.

All of your other points are correct, however. Hobby miners won't get anywhere (still) and most industrial miners will continue to get bigger.

[Betwrong]

I think we shouldn't forget one very important thing regarding China's plan to ban Bitcoin mining. China is a very corrupt state. Bribery and theft of public funds costs at least three percent of China's GDP. Corruption is wide spread not only on the lower levels of society, but on the highest levels as well. Many high ranking government officials have been found guilty of corruption in the recent yeas. So, this "plan to ban Bitcoin mining" can be simply a way to compel big mining companies to bribe some government officials so that they wouldn't carry the law into effect.

[leea-1334]

I would say that most miners won't leave their country unless mining is the biggest source of income that they have, and the only one sustaining them. It is *possible* that miners will move their operations out of China, but I don't think most will if they have another form of employment. They may move the equipment out of the country and have it managed by international members, but it's a lot harder to move citizenship between countries than you'd think. Doing all of that just to keep mining Bitcoin is dicey.

All of your other points are correct, however. Hobby miners won't get anywhere (still) and most industrial miners will continue to get bigger.

Miners do not really have to leave their country, they only need to transfer out their operations. These are rather different things. Considering also that most big China based miners actually had very close relationships with power providers,,, I remember a lot of them had individual deals with hydro companies,,, I think more is made out of the issue than really is.

[alyssa85]

They're trying to discourage everything to do with bitcoin and cryptocurrency in general because they can't control it's price.

According to the following, they want to issue a cryptocurrency version of the renmimbi:

https://cointelegraph.com/news/official-chinese-currency-renminbi-to-become-cryptocurrency-expert-says

Donald Tapscott, executive chairman of the Blockchain Research Institute,  stated that the official Chinese currency, the renminbi (RMB), will become a cryptocurrency, in an interview with Bloomberg on April 17.

In the interview, Tapscott revealed that he had recently been at a meeting with the vice-chairman of the Communist Party in China, who recalled that President Xi Jinping thinks that blockchain is one of the most important technologies for the future of the country.

Speaking about the government’s ban on cryptocurrency exchanges, Tapscott outlined that China is considering to ban cryptocurrency mining as well, and added:

    “It’s not really necessary to do that [to ban exchanges and mining] because in 20 years we are not going to be using bitcoin in China. Chinese people will use the RMB, only the RMB will become a cryptocurrency. The central bank of China will turn it into a digital currency.”