How will chinese miners pivot from their exchanges shutting down on the 30th?

[ethereumhunter]

i think if chinese really close the market, japanese will taking over bitcoin market in asia and maybe japanese will become bigger than chinese. but for the miners, i think they still mining bitcoin until there are no banning from the government for the mining itself. the miners will move into japanese market and selling their bitcoin into that market.

[qiman]

Bitcoin mining will never stop as long as it is profitable. I think that the Chinese will use other exchanges outside of the jurisdiction of China to dump the Bitcoin. There are always ways around the local laws and I am sure they will find a way to sell the Bitcoins. Bitcoin itself or mining is not banned in China only the Chinese exchanges are for now shutting down operations.

[Titanos]

China didn't ban mining. No reason to do this.

[severaldetails]

I do not see how banning exchanges will affect the miners.
They have the options to bring their bitcoins to an exchange in Japan or anywhere else in the world.
For the miners the main consequence is the decreased price of the bitcoin, everything else is not relevant to them.

[Kanapka]

Sooner or later exchanges with the proper licenses will appear again and the business will continue as usual, maybe even before the 30th of next month

[exstasie]

but for the miners, i think they still mining bitcoin until there are no banning from the government for the mining itself. the miners will move into japanese market and selling their bitcoin into that market.

There's no restrictions on miners currently, and I strongly believe there won't be. The bigger context for this crackdown on cryptocurrency is an attempt to control the shadow banking industry. The reason? Because of all the capital flight overseas, particularly into real estate in the West.

How does mining fit into that? Well, Bitmain is by far the biggest ASIC manufacturer in the industry. As an aside, they are now also manufacturing Scrypt miners as well. This means massive amounts of capital inflow into the country (as international buyers pay Bitmain with USD or BTC)... and this is precisely what the government needs.

They are walking a tightrope between the shadow banking industry and a mining industry which is beneficial to their economy.

[pixie85]

Any thoughts from bigger players in the scene of how they will change it up since theres a ton of hashing power coming out of china. I understand that the japanese are taking advantage of this and I have been seeing a surge of bitcoin going into japanese exchanges. I just want to understand whats going on with all that hardware. Thanks.

My expert trader said that Chinese just want to make a regulation, not permanently ban so bitcoin still have chance to exist on China in future.
I'm also heard that there are some exchanger that still exist, of course not a big exchanger

That's right nobody is banning Bitcoin in China. ICOs were banned , that's true, but Bitcoin wasn't. Exchanges are being closed because of their involvement in ICOs and I believe it's not permanent. Some people from China were explaining this on the forum, you just need to find the threads in bitcoin discussion.

[GreenBits]

Sooner or later exchanges with the proper licenses will appear again and the business will continue as usual, maybe even before the 30th of next month

im curious if this will be the case; it will be a quick move if they are able to put down a complete regulatory framework by then. what im more concerned about is the supply that comes from china, that is a bit too large to handle via p2p transactions. unless major miners leave their home market, they should have a difficult time liquidating that much btc in a market with absolutely no liquidity. i want to see if this artificial supply restriction in bitcoins biggest market, actually drives the price up.

what i suspect is that the rampant speculation would see the price rise regardless. but we will all see, and very soon.


can we have one month without some bullshit man ?!

[Seansky]

Any thoughts from bigger players in the scene of how they will change it up since theres a ton of hashing power coming out of china. I understand that the japanese are taking advantage of this and I have been seeing a surge of bitcoin going into japanese exchanges. I just want to understand whats going on with all that hardware. Thanks.

They can still convert it to fiat via services that lets them cash out their bitcoin using a bitcoin credit card for example and there are a ton of services offering that. They can really afford buying a plastic credit card from those services and maybe some will find a more convenient way to cash out their mined bitcoins, they wont quit just because of FUD. Also, Chinese exchanges werent really is not banned now, only ICO's so it is still convenient for them.

[buwaytress]

Right, so we've all established that there's more than one way to skin the cat. The cat being Bitcoin and the skin being converting it to fiat. Up til now, I've always assumed that miners have only been selling enough BTC to keep the operations going, or to expand their hashpower. But what if all these huge miners have never actually needed to sell any of their coins? What if, the business model was simply to put in actual fiat into the business of mining, and all coins mined were actually kept or diversified out into other alts, or better still, other businesses accepting Bitcoin?

I would imagine that these exchanges from BTCC and via anyway, who are also miners, were simply a side business that doesn't really harm their prospects?

I also note that there are bound to be huge, serious buyers out there, willing to buy coins outside a traditional exchange.

[pikebu]

The Chinese miners still can trade the bitcoins on the localbitcoin.com and other place include on bitcointalk in currency exchange section, i don't think the mining activity will be closed too as long the miners pay electric and internet bill, due to on the mining activity there are no process exchange fiat money to bitcoins just transaction payment electric and internet bill and it can not be regulated by government, it is something common around the world.

[fragout]

I dont see the Chinese gov doing anything like banning the miners. Why would they.
The miners will have to sell on foreign exchanges and ship the money back into china which means a net inflow of capital rather than the other scenario when the local exchanges were open and people were spending yuan to buy bitcoin and shipping out the bitcoin to foreign lands

[gribble]

Well the Chinese government doesn't ban activity of bitcoins mining and i don't find information about it on any other website and news, the banning of Chinese markets is not problem for Chinese miners because many method be used for sell their bitcoins, they can sell the bitcoins on localbitcoin and any other place, so even the markets of bitcoins be banned by their government, they still can mine bitcoins and keep make money with bitcoins.