Could Chinese BTC miners decimate price?

[lelam]

The article below states that Chinese miners may no longer receive discounted electricity and tax deductions (I didn't know they had been.) If true would this cause some of the miners to begin selling what BTC they have accumulated? BTC on GDAX went from a bit over 16K yesterday to an even $14K in the last hour.

https://www.coindesk.com/bitcoin-fac...p-towards-15k/

Notably, fears of a China crackdown on bitcoin mining may have weakened the bid tone around the world's largest cryptocurrency by market capitalization.

Caixin Global reported last week that local regulators in China may not longer offer discounted electricity and tax deductions to mining companies. Further, a leaked document now suggests that China's top internet finance regulator is requesting that local governments push bitcoin-mining operations towards an "orderly exit" from the industry.

Given that China is the world’s capital of bitcoin mining, and accounts for more than two-thirds of the world's processing power devoted to the process of securing the network, such moves – if proved to be genuine – could bring more pressure to prices of the cryptocurrency.

The technical chart also indicates an increased risk of a bearish breakdown.

[plavirudar]

They're moving to Canada, and in any case there's no good reason for them to dump their coins, even if they are being cracked down upon.

[Raymond_B]

In my opinion the reason for all cryptos moving down has been the South Korean FUD. Things are looking a bit better at the moment.

[kenji]

I hope that it does decimate the price, that way I can buy for cheap, and wait for it to rise again as history has shown it has always done!

[jseverson]

Nah. Exchanges were banned and it didn't really faze miners. More expensive electricity will hurt for sure, but they could always move their operations someplace else, like Bitmain which has already started to diversify.

It's more likely for weak hands to dump, fearing that the end of Chinese mining would be the end of Bitcoin, when it really isn't. Big news can cause huge price swings after all, and something of this significance is certainly going to be sensationalized by the media. It may even be a good thing in the long run. China does what it pleases, and having so much hashpower behind its firewall means it cause some serious FUD by itself.

What has to be noted though, is that this isn't final yet and could still be walked back on like the recent South Korea news.

[gentlemand]

I doubt many of the smaller miners accumulated a large amount. There are several I've never heard of who spent millions of dollars setting up and must be spending tens of hundreds of thousands per month on running.

That's a lot of money to recoup and any coins they have will be going straight out the window to pay it back.

[1Referee]

What has to be noted though, is that this isn't final yet and could still be walked back on like the recent South Korea news.

In this case there have been several miners having said to look into alternative locations due to how hostile their government starts to behave against anything crypto related. That's why (at least for now) there is more "truth" in these miners leaving to x country articles than those having South Korea as subject. It wasn't all that long ago where people were saying it was pure fud that Chinese exchanges had to shut down due to their government forcing them to do so, which later became the hard reality. We'll see what happens, but if turns out that miners are actually moving away from China, I won't lose a single second of sleep over it. I rather have them go elsewhere than staying in a country with an unstable government.

[BrewMaster]

BTC on GDAX went from a bit over 16K yesterday to an even $14K in the last hour.

it is because their site was having some troubles yesterday. they even stopped all payments.

...

sounds more like FUD to me than real thing. specially whenever i hear the words "leaked" and "hidden sources" this is the case.

in any case i hope they do that. you see China has always been used as the main source of all FUDs for years. they closed exchanges the first time, fake volume vanished and with it a big part of FUD. they closed exchanges the second time and a lot of other FUD went out the window. if they do something about mining, it will close down a whole lot of other FUD for good. specially since they have been saying bitcoin is centralized because a lot of hashrate comes from China!!!

better take the hit one time and be done with it instead of tolerating bullshit FUD every couple of weeks.

[thejaytiesto]

This was surprising because it would mean that the government in China was never cooperating tightly with Bitmain so that could be discarded as a conspiracy theory now I guess? Since if they where working together, they would be still helping miners. They would screw their citizens and they did by closing exchanges, but miners too?

I think we will see some price turbulence due FUD but we'll be ok after that. The loss of hashrate comes with more incentives to mine for someone else due decreased difficulty.

[stompix]

The article below states that Chinese miners may no longer receive discounted electricity and tax deductions (I didn't know they had been.) If true would this cause some of the miners to begin selling what BTC they have accumulated?

Why would they do that?
The actual reason for selling?

Given that China is the world’s capital of bitcoin mining, and accounts for more than two-thirds of the world's processing power devoted to the process of securing the network, such moves – if proved to be genuine – could bring more pressure to prices of the cryptocurrency.

Assumptions!!!
Mining pool based in China have 2/3 of the hashing power.
And more on that, even not all the gear that is actually mining in China is owned by Chinese.

From my point of view, they could do whatever they want.
Nobody gives a damn about China anymore and so should you.

[vectorshield]

They're moving to Canada, and in any case there's no good reason for them to dump their coins, even if they are being cracked down upon.

Selling is a bad idea, they only sell enough to cover their cost and then they keep the rest of their coins and if I was a miner I would do the same, I like the idea they relocate to other countries so not all miners are under the same jurisdiction.

[CryptoBry]

This is just another baseless speculation. Unfortunately, many times the market can react negatively to many unfounded ideas and opinions. Now, if there is still a money that can be made from Bitcoin mining, am sure that they can easily transfer their business elsewhere where the business environment and the government are not big blocks for their goals of continuing doing what they are doing best. In fact, with China finally kicking out mining out of their country, this presents a very good opportunity for other areas to get involved with Bitcoin mining and in the process spread the miners influence away from a single country. This is just a temporary set-back and will certainly not affect the whole of Bitcoin.

[leea-1334]

Well, they have had their long run and the signs were showing months ago when state electricity branches started issuing their own notices to prevent discounted hydro electricity. But the bigger ones like Bitmain already have long term deals of several years in place so they will hold on to high profits for now. Low Bitcoin prices just means miners will hold longer to wait for more profits, but maybe this will also mean a slow down in growing hash power?

As we can see the market moves up and down, regardless of what type of news we think can affect it. Very interesting times to watch indeed.