‘Bullish for Bitcoin’ — China Scraps Plans to Ban Cryptocurrency Mining

[ecnalubma]

Bitcoin (BTC) mining will not face a state crackdown in China, authorities have confirmed in new official documents. As noted by Blockstream CSO Samson Mow and others on Nov. 6, mining no longer features on a list of industries Beijing considers undesirable.

“Bullish for Bitcoin”
The change came via a new edition of China’s Industrial Structure Adjustment Guidance Catalog, which will take effect from the start of 2020.

“China’s National Development and Reform Commission has removed #cryptocurrency mining from the list of industries they want to eliminate. Bullish for #Bitcoin,” Mow commented.

A previous incarnation of the document earlier this year had conversely included Bitcoin mining as one of the government’s targets.

The news marks a rare boon for Bitcoin-related activities in China, a country where cryptocurrency outside the control of the central bank remains all but banned.

BTC markets calm
The recent endorsement of blockchain technology from president Xi Jinping coincided with a dramatic rise in BTC/USD, after which local media cautioned on misinterpreting the remarks as supportive of crypto.

Following the most recent announcement, however, little appeared to change on Bitcoin markets.

Mining has long formed a profitable industry in China, with cheap electricity meaning major participants still reside there. Canaan Creative, one of the biggest Bitcoin mining rig manufacturers, will reportedly undergo a $400 million initial public offering, or IPO, later this month.

Cointelegraph

No doubt that this could be the one of the most bullish news this year, this could quiet bring back confidence to Chinese Crypto miners that fled from their country due to past regulation pressure. Whats your thought, is this the bullrun catalyst that weve been waiting for?

[gentlemand]

I don't think it's a catalyst for anything. It reinforces the status quo. It wouldn't have mattered if they had given miners the boot. They would've migrated elsewhere or quit and had their place taken by someone else. I've never seen any mining related news affect the market. No one needs to care about it other than miners themselves.

[lobat999]

Maybe its China's strategic first step to reinforce its planned entrance to the crypto industry particularly on its proposed state backed cryptocurrency, that is why they have to project a "crypto friendly" image to soften the crypto community's stance on their previous anti crypto policies or maybe they were just afraid from a crypto-community backlash on it.

Simply put, if they were to promote their own cryptocurrency, then they must in some way or another also embraced things related about crypto (including mining), whether its a perceived competitor or not, just like the case with Bitcoin. Imho.

[Fatunad]

China is slowly turning the table around. They were once against cryptocurrency and now they slowly took back their grudges against btc. This is a serious indicator about their plan to build their own cryptocurrency run by their own blockchain also.

[blckhawk]

Based on the quoted text from the article, with Canaan Creative's planned IPO, together with retraction of ban to Bitcoin and other cryptocurrencies, would be a great sign of the start of the bullish market and we might experience it sooner than we think. But I don't really think the recent $10k pump weeks ago was caused by President Xi Jinping's statement, but rather is only manipulation. Another thing to note is that whales want to sell off right before the next halving to get the most out of the anticipated halving skyrocketing of price.

[Wexnident]

They had no choice I'd suppose. The mining population in china is way too huge and this could lead to huge losses for their economy there and then if they stricly enforced the ban. I'm more surprised they even started such a ban in the first place. Well, this looks like another country has started to look at crypto in a positive view once again, but this time, all the world knows.

[Lucius]

I don't think it's a catalyst for anything.

I agree this news is not something crucial, but it definitely shows that China changes his views not just towards crypto mining, but also toward blockchain and in a way Bitcoin. These days we can read the news that Binance is reportedly returning to Beijing and that they launched P2P trading in China last month.

How positive is all this for Bitcoin in the long run, it's hard to say, but in some ways, it signals that things are changing for the better as far as China is concerned. I think that all this can have a positive effect, the Chinese have money and they show interest in Bitcoin before, so if they get a chance to invest legally&easy, the Yuan will flow into the crypto again.

[LeGaulois]

I don't think it's a catalyst for anything.

Not really yes, but enough for the mass to start thinking: wow Bitcoin to the moon again! It gives people back their confidence. The kind of news that boosts the BTC price, FOMO. But the hype is faded after a week or 2.
(A lot are probably re-buying at $9000 the bitcoins they sold at $5000 lol)

Anyway, it's good to see at least China isn't so close-minded as we tend to think. Yeah, we can see how they're changing their opinion

[error08]

I agree this news is not something crucial, but it definitely shows that China changes his views not just towards crypto mining, but also toward blockchain and in a way Bitcoin. These days we can read the news that Binance is reportedly returning to Beijing and that they launched P2P trading in China last month.

Yes, it's not a significant matter but if we think more deeply about it, probably Binance really has something/aggrement under the table which is not published.
However, such speculation doesn't mean anything as long as the Chinese government still ban bitcoin and exchanges.
The questions is; why cryptocurrency mining? are they want to control the miners? control the mining pool of bitcoin network’s collective hashrate?

[audaciousbeing]

Bitcoin (BTC) mining will not face a state crackdown in China, authorities have confirmed in new official documents. As noted by Blockstream CSO Samson Mow and others on Nov. 6, mining no longer features on a list of industries Beijing considers undesirable.

“Bullish for Bitcoin”
The change came via a new edition of China’s Industrial Structure Adjustment Guidance Catalog, which will take effect from the start of 2020.

“China’s National Development and Reform Commission has removed #cryptocurrency mining from the list of industries they want to eliminate. Bullish for #Bitcoin,” Mow commented.

A previous incarnation of the document earlier this year had conversely included Bitcoin mining as one of the government’s targets.

The news marks a rare boon for Bitcoin-related activities in China, a country where cryptocurrency outside the control of the central bank remains all but banned.

BTC markets calm
The recent endorsement of blockchain technology from president Xi Jinping coincided with a dramatic rise in BTC/USD, after which local media cautioned on misinterpreting the remarks as supportive of crypto.

Following the most recent announcement, however, little appeared to change on Bitcoin markets.

Mining has long formed a profitable industry in China, with cheap electricity meaning major participants still reside there. Canaan Creative, one of the biggest Bitcoin mining rig manufacturers, will reportedly undergo a $400 million initial public offering, or IPO, later this month.

Cointelegraph

No doubt that this could be the one of the most bullish news this year, this could quiet bring back confidence to Chinese Crypto miners that fled from their country due to past regulation pressure. Whats your thought, is this the bullrun catalyst that weve been waiting for?

To others who might not read much to this news, its fine to hold that opinion but really for me, its a great news because should the reverse be the case in that they would be entering implementation phase of cracking down on bitcoin mining having annouced their intention since last year then its something to be happy about that they are now seeing things from another point of view considering the amount of mining farms located in China at the moment.

I would not bank more to it though because its a policy that change in crypto favor today, it could be something else tomorrow. Government policy direction can change or even see a superior argument to backtrack this wonderful decision of theirs.

[abhiseshakana]

Still a plan. And I think if the Chinese government legalizes cryptocurrency mining, of course, there will be a series of regulations that will be binding in the technical application. One of the concerns, if the Chinese government does not prohibit cryptocurrency mining, then there is a notification or collection mechanism in an area so that the government is easier to monitor. In essence, it's just a matter of control and supervision. With supervision, the Chinese Government can make additional income for the country from several sectors, including taxes, income from the use of electricity, and retribution.

In my opinion, this news does not have a correlation to the rising price of bitcoin, because, the price doesn't follow the hashrate, but the hashrate which follows the price instead (if Bitcoin price rises then the number of miner will increase due to high profitability)

What underlies the Chinese government's policy which seems to accelerate the adoption of blockchain technology in the country:
- Education of the Chinese people by direct practice is not theoretical
- The moment is right, towards the end of the year and as we know 2020 is the American presidential election, it seems China is aware that American concentration will be focused on the election
- China is a country that was originally an impersonator to be an innovative country. China mimics America's strategy to become the ruler of the world. The more open the more advanced

[Eugenar]

I just want to provide my insights about the title or subject for this topic which is bullish for bitcoin. Basically, allowing miners to continue their operation in bitcoin mining will just provide the same output for the market price of bitcoin. Though, there is a possibility that this freedom for mining facilities and infrastructure will open up opportunities for people to increase their trust to bitcoin as they believe that if mining that is responsible for the transaction of bitcoin will be stable, so as the market price as well. With this, a result of bitcoin being bullish might be induced if we spread the word about this to others that are a non-crypto enthusiast.

[CryptoBry]

Maybe its China's strategic first step to reinforce its planned entrance to the crypto industry particularly on its proposed state backed cryptocurrency, that is why they have to project a "crypto friendly" image to soften the crypto community's stance on their previous anti crypto policies or maybe they were just afraid from a crypto-community backlash on it.

Simply put, if they were to promote their own cryptocurrency, then they must in some way or another also embraced things related about crypto (including mining), whether its a perceived competitor or not, just like the case with Bitcoin. Imho.

You have a good analysis on why there seems to be reversal in the official policy of the Chinese government on the issue of Bitcoin mining. I think it would be not a good idea for them to enter the world of cryptocurrency yet not allowing and recognizing the important roles that this industry is contributing especially to their own economy. Would this reversal soon to include the eventual recognition of Bitcoin as a currency or as asset in China? I am hoping so. And why would China do it? As what I said before, so that it can be able to attract buyers to its own digital currency. China right now is sensing a good opportunity to be the biggest force in the world of Bitcoin and cryptocurrency and I don't think they are going to allow this chance-of-a-lifetime to easily get away. Remember that China has that great ability to smell "blood" like a shark looking for its next victim and while the whole world is asleep and still relaxing the shark is going to strike with ferocity.

[gabmen]

Bitcoin (BTC) mining will not face a state crackdown in China, authorities have confirmed in new official documents. As noted by Blockstream CSO Samson Mow and others on Nov. 6, mining no longer features on a list of industries Beijing considers undesirable.

“Bullish for Bitcoin”
The change came via a new edition of China’s Industrial Structure Adjustment Guidance Catalog, which will take effect from the start of 2020.

“China’s National Development and Reform Commission has removed #cryptocurrency mining from the list of industries they want to eliminate. Bullish for #Bitcoin,” Mow commented.

A previous incarnation of the document earlier this year had conversely included Bitcoin mining as one of the government’s targets.

The news marks a rare boon for Bitcoin-related activities in China, a country where cryptocurrency outside the control of the central bank remains all but banned.

BTC markets calm
The recent endorsement of blockchain technology from president Xi Jinping coincided with a dramatic rise in BTC/USD, after which local media cautioned on misinterpreting the remarks as supportive of crypto.

Following the most recent announcement, however, little appeared to change on Bitcoin markets.

Mining has long formed a profitable industry in China, with cheap electricity meaning major participants still reside there. Canaan Creative, one of the biggest Bitcoin mining rig manufacturers, will reportedly undergo a $400 million initial public offering, or IPO, later this month.

Cointelegraph

No doubt that this could be the one of the most bullish news this year, this could quiet bring back confidence to Chinese Crypto miners that fled from their country due to past regulation pressure. Whats your thought, is this the bullrun catalyst that weve been waiting for?

Nope. Good news, yes. Catalyst for a bull run, i doubt it. Could probably boost btc price for a short while but i don't think it'll start a sustained run to consider it a bull run. Btc's price spikes and fluctuates to a variety of reasons but usually recoils or slows down. At least that's how I see the the current state where we started under 4k this year. Unless china lifts the all bans and entirely accepts crypto, then chinese users may start something on their own.

[alyssa85]

I think the issue is that they have surplus electricity, and with their economy slowing down, they have even more surplus electricity than usual. So it makes sense to allow the bitcoin miners to use that electricity so that it doesn't go to waste.

I wonder if they're also allowing them to continue because they want the mining infrastructure to remain in place for when they launch their own coin.

[Jating]

I think the issue is that they have surplus electricity, and with their economy slowing down, they have even more surplus electricity than usual. So it makes sense to allow the bitcoin miners to use that electricity so that it doesn't go to waste.

I wonder if they're also allowing them to continue because they want the mining infrastructure to remain in place for when they launch their own coin.

That's a big possibility and we can't discounted it. All the infrastructure is already there, no need to create to support their own crypto, so that's a good move for them.

And remember that Binance a key player in crypto is expanding its business in China so there's a lot of thing going on behind that we might not be aware of, hence China softening their stance.

So we might see this as a positive news for us, but I don't see this as a catalyst though, it might affect the price positively but it won't be sufficient to say that bitcoin will be bullish because of this news.

[alyssa85]

That's a big possibility and we can't discounted it. All the infrastructure is already there, no need to create to support their own crypto, so that's a good move for them.

And remember that Binance a key player in crypto is expanding its business in China so there's a lot of thing going on behind that we might not be aware of, hence China softening their stance.

So we might see this as a positive news for us, but I don't see this as a catalyst though, it might affect the price positively but it won't be sufficient to say that bitcoin will be bullish because of this news.

If they're going to switch all their mining from bitcoin to their new coin, it's not positive for bitcoin at all. It will mean that until the hashrate adjusts there will be horrendous backlogs in the mempool as the miners in the rest of the world struggle to mine blocks.

I wish miners in the rest of the world would step up so bitcoin (and other cryptocurrencies) are less dependent on China.

[alexsandria]

A catalyst we all been waiting for somehow. China is in the very top in world's hash power producing at almost 70% and good news has come that China won't be cracking down Bitcoin mining anymore. Furthermore mining power and more miners would be added to an average of China produces, and thus would serve as an additional support to blockchain and bitcoin related stuff.

[jets567]

the Chinese Government can make additional income for the country from several sectors, including taxes, income from the use of electricity, and retribution.

For me this is the most valid reason why they removed cryptocurrency mining from their list since the government and chinese miners will both benefit from it. I also think that the adoption of crypto mining is one of their steps in embracing blockchain technology, following the orders of  their president who announce his full support about the new tech.

[White Christmas]

Maybe this is probably one of the many strategies of China because as we can think about it, there are some news that China wants to ban bitcoin mining in their country because they cant accept that cryptocurrency will be allowed into their own land. But on the past few days, the president of China announced about the accepting of blockchain technology in their country and being the frontliner or central of blockchain in the world and right now there is also a news that banning bitcoin mining in China become trash.
I can probably say that this is a strategy of the china in order for them to build a new currency in order to establish it that can be back up by gold. This probably the main reason why China abolish the banning of bitcoin mining in their own country.