More China Craziness - "Cracking done on mining"

[aoluain]

But the thing is that , China is serious or not?

Read the post above yours by Kakmakr to understand.

In short:
China is developing their own digital currency. It's not going to be a decentralized asset like bitcoin is and it's not yet clear whether it will be blockchain-based or not. From some articles I read in the past, they are already trying out their digital coin in a few Chinese cities. Not sure if they consider those trials as successful or not.

It's pretty obvious that they want their citizens to be disgusted by bitcoin as much as possible to increase the adoption rate of their government-controlled digital asset. 

The digital Yuan is happening and from this report below it seems like there will be an
increased demand for crypto when it is fully implemented. A lot of people will be unhappy
that another part of their privacy is eroded away. The Chinese authorities know this
and are taking steps now, we will find out how serious those steps are soon enough.

https://news.bitcoin.com/chinas-absolute-control-digital-yuan-boost-demand-cryptocurrencies/

China’s push for the digital yuan will boost demand for cryptocurrencies, according to an analyst at BK Asset Management, citing that the Chinese government wants “absolute power” over the wealth and income of its citizens.

[Saltius]

It is for so called carbon neutrality.
Crypto mining is just one of many industries in China affected by this stupid thing.

[bryant.coleman]

Users need to realize that the news from China was one of the several reasons why the exchange rates went down. It was not the "only" reason. First there was a shocker from Elon Musk, and then there was news about the American authorities preparing a lawsuit against Binance. The news related to Binance rattled a lot of investors, because a number of projects were planning to migrate to the Binance Smart Chain, and at that point of time BNB was the third largest cryptocurrency in terms of market cap.

[somac.]

I wrote this in the Wall Observer thread, relevant for the conversation here

This is interesting.

So there has been some news regarding the "China bans Bitcoin" that has been doing the rounds and that contributed to the recent dumpfest.

Apparently, the CCP is actually serious this time so the Chinese based miners have all shat their pants and were major sellers during the dump. Not only that they are also now either aggressively moving their operations or selling their mining equipment on mass, at firesale prices as well. We are seeing another significant drop in hash rate right now so it might actually be true, next difficulty adjustment (29th May) is set to be about a 15% decline.

If this is true, this is the best news we have received in a long time, mega bullish medium/long term. With China out of the loop, the China and environmental FUD will cease, putting some of the final nails into the critics coffins (they'll have to go back to talking tulips). I also beleive that if this is true, it will mean an approval of the ETF as, I believe, one of the larger concerns was the influence of China over the asset.
Nic Carter seems to be the most up to date on this, here are some of his tweets.

https://twitter.com/nic__carter/status/1396538897077841923

https://twitter.com/nic__carter/status/1396553898454835201

https://twitter.com/nic__carter/status/1396652765426987022

dldr of what he nic was talking about in the pr3vious twitter link https://twitter.com/mikekilinski/status/1396666279042314244

I haven't watched this one yet, but this should give a good overview of the Chine situation https://twitter.com/nic__carter/status/1396683091826069507

hashrate perscentage by country in 3 chinese mining pools BTC.com, Poolin, and ViaBTC https://cbeci.org/mining_map

[NeuroticFish]

Well, it is possible and perhaps in my own opinion, --there is a big whale there who also secretly manipulating the market.

... and I start to think that China is such a whale and all their actions are coordinated in that direction, just they don't do it that often to not gather too much attention.

Not so well to be done for China. I don’t think their decisions towards bitcoin are reasonable. Let us just say that their agendas consider bitcoin as their competition but I don’t think this is the best way to handle it.

If they would have wanted it out of the country, they would have done that. But they don't. I don't know if only some very powerful members of the Party exercise their influence into avoiding Bitcoin get fully banned or it's intended to only stop this and that to stay in the news, but we have to keep something in mind: China always tried to find ways to acquire western wealth, no matter if it was western currencies, companies or, why not, Bitcoin...

[iram3130]

If you look at all the stable coins inflow and the net outflow of Huobi exchange then you will understand is that China is buying as much as a possible dip. The price already claimed 36k$ and moving towards the new resistance of 43k$ now. China banning crypto is not new, they do this all the time. They themselves buy the dip and pump it back.

[stompix]

I wrote this in the Wall Observer thread, relevant for the conversation here

This is interesting.
So there has been some news regarding the "China bans Bitcoin" that has been doing the rounds and that contributed to the recent dumpfest.

Yeah too bad for this theory is that the drop in hashrate started well ahead of the Chinese announcement:

Current Pace:   86.6247%  (792 / 914.29 expected, 122.29 behind)
Next Difficulty Change:   between -13.3394% and -8.8577%

As you can see the news came in late hours on the 20th but already by the 19 we were down -13% in hash rate combined for over a week.
So I would rather blame this swing on the price drop and the end of relocation for the rainy season than what he is babbling there.

[Vishnu.Reang]

As you can see the news came in late hours on the 20th but already by the 19 we were down -13% in hash rate combined for over a week.
So I would rather blame this swing on the price drop and the end of relocation for the rainy season than what he is babbling there.

Thanks for posting this. Since around 80% of the hashing power comes from China, this simply means that most of the mining farms there are up and operating without any issue. The Chinese whales have a habit of crashing the prices every now and then, so that they can accumulate cheap coins. This has happened so many times, and similar to the previous such occasions, I expect the exchange rate to be back to $50K levels by the first week of June. Don't know why a section of the crypto users react so negatively to all this FUD.

[temple]

But the thing is that , China is serious or not?

Read the post above yours by Kakmakr to understand.

In short:
China is developing their own digital currency. It's not going to be a decentralized asset like bitcoin is and it's not yet clear whether it will be blockchain-based or not. From some articles I read in the past, they are already trying out their digital coin in a few Chinese cities. Not sure if they consider those trials as successful or not.

It's pretty obvious that they want their citizens to be disgusted by bitcoin as much as possible to increase the adoption rate of their government-controlled digital asset. 

The digital Yuan is happening and from this report below it seems like there will be an
increased demand for crypto when it is fully implemented. A lot of people will be unhappy
that another part of their privacy is eroded away. The Chinese authorities know this
and are taking steps now, we will find out how serious those steps are soon enough.

https://news.bitcoin.com/chinas-absolute-control-digital-yuan-boost-demand-cryptocurrencies/

China’s push for the digital yuan will boost demand for cryptocurrencies, according to an analyst at BK Asset Management, citing that the Chinese government wants “absolute power” over the wealth and income of its citizens.

The China craze is something we can't control for. We have to make up our own minds and ideas when it comes to investing.

[7788bitcoin]

^^^ All you need to do is to avoid these FUD news, since all these stupid news were coming out i was afraid that the transaction charges are going to skyrocket once again because the news was that the mining farms are shutting down in China and till now i did not find any drop in hash rate which means either these news coming out are fake and made solely to create panic in the market.

[bitcoin-shine]

The memecoin craze has triggered irrational investment by ordinary citizens. The Chinese government just wants to protect investors, remind them and calm the market. The news was overinterpreted and the markets panicked.

[Argoo]

From time to time, news comes from China about the problems of miners with bitcoin mining in this country. Moreover, this has already been happening since 2017. Let it be better that mining is really completely banned there so that there is no such constant negative information. In my opinion, then it will become much easier. Bitcoin mining will still take place in other countries. Therefore, you should not worry about it.

[gabbie2010]

From time to time, news comes from China about the problems of miners with bitcoin mining in this country. Moreover, this has already been happening since 2017. Let it be better that mining is really completely banned there so that there is no such constant negative information. In my opinion, then it will become much easier. Bitcoin mining will still take place in other countries. Therefore, you should not worry about it.

Another alternative to banning is to move their mining rigs to more crypto friendly country I beleive this will put an end to all these negative news always coming from China this is another calculated attempt by the communist goverment to bring down bitcoin of course they won't succeed every of their previous attempts always hit a brickwall neither will this latest one have any long term impact on the price of bitcoin the news can only temporarily result to minor dump I beleive price recovery is well assured.

[Pmalek]

Another alternative to banning is to move their mining rigs to more crypto friendly country...

Moving to a new country isn't as easy as it sounds. These people have a life in China, family, children, friends. All that can't be abandoned over night just like that. Not to mention familiarizing yourself with the regulations of the new country, finding an appropriate and cheap location to set up your farm, and physically moving your equipment from point A to point B. All that takes time and money. There is also the language barrier, cultural differences to consider, etc. Of course it's doable when someone forces you into it, but I believe that's not what the Chinese miners want to do.   

[LeastComicStanding]

Another alternative to banning is to move their mining rigs to more crypto friendly country...

Moving to a new country isn't as easy as it sounds. These people have a life in China, family, children, friends. All that can't be abandoned over night just like that. Not to mention familiarizing yourself with the regulations of the new country, finding an appropriate and cheap location to set up your farm, and physically moving your equipment from point A to point B. All that takes time and money. There is also the language barrier, cultural differences to consider, etc. Of course it's doable when someone forces you into it, but I believe that's not what the Chinese miners want to do.   

This is an interesting take. I usually think of the mining outfits as large companies or companies that have made enough to be able to move when forced (like this), but surely there are lots of operations that may just have to shut down because they can't overcome the barriers you listed. Moving across country lines isn't as easy as pick up and physically moving, there are import/export laws and regulations and stipulations that could all make it very difficult, even if you DID speak the language(s) of the new locations.

Thanks for sharing this perspective.

[stompix]

Moving to a new country isn't as easy as it sounds. These people have a life in China, family, children, friends. All that can't be abandoned over night just like that. Not to mention familiarizing yourself with the regulations of the new country, finding an appropriate and cheap location to set up your farm, and physically moving your equipment from point A to point B. All that takes time and money. There is also the language barrier, cultural differences to consider, etc. Of course it's doable when someone forces you into it, but I believe that's not what the Chinese miners want to do.   

And you thought that the guys who cheerfully claim miners will just move have ever done it or have at least run a business that has ever moved to form a country to a different country? For most of them they think you pack the miners in a box, you ship it to a different country, there you open Craiglist and rent with a click a warehouse, put tour phone in hotspot mode and plug the miners in a socket and that's it. If they would see the number of documents you're required to open the business, then the permits, then the contracts with the power supplier, then hiring technicians and other stuff, dealing with inspections, dealing with the IRS, hiring people to translate everything, legalize papers, and most importantly, getting in the first place in that country and obtaining residency!

Yeah, behind the keyboard it's easy, one might think it's like Farmville but in real thing are different, otherwise, we would have seen thousands of those moves already. I've spent two days with customs and clearing papers for one damn container coming directly from a manufacturer in the US and that was agricultural equipment, and I'm in the EU so a lot of already established protocols. Imagine being a foreigner in a country and receiving 2 containers with equipment worth 10 million from a company that nobody knows a thing what they are and how much is really worth and you're not able to speak a word without a translator nor are you able to make sure that translator is not screwing you up.

[Streets 2.0]

I was already thinking about bans a few months ago when similar conversations started in India, but there, in my opinion, the question still stands squarely and no decision has been made. China surprises me - perhaps this is such a step to popularize their digital yuan and clean up competitors. Given the tight control and authoritarian management in all spheres, this is certainly not surprising, but it is still strange that such a giant would so easily part with its leverage on the market and expel people who gave it such an opportunity.

[Dadan]

Another alternative to banning is to move their mining rigs to more crypto friendly country...

Moving to a new country isn't as easy as it sounds. These people have a life in China, family, children, friends. All that can't be abandoned over night just like that. Not to mention familiarizing yourself with the regulations of the new country, finding an appropriate and cheap location to set up your farm, and physically moving your equipment from point A to point B. All that takes time and money. There is also the language barrier, cultural differences to consider, etc. Of course it's doable when someone forces you into it, but I believe that's not what the Chinese miners want to do.   

I guess there will be still operating illegal mining in china, like those you have mentioned. It's very hard to move to another country. First of all, It needs significant money to move out, including your family/place/foods.
As China is known for illegal stuff, I'm sure they will still be some peoples/group/organisation that will operate mining rigs stealthy in China.

[ILuckyGuyI]

China didn't want to content themselves with only banning cryptocurrencies. They wanted to ban mining also. I can't say that I'm surprised about this. When it comes to China, everything is possible.  

But it is good for other miners in other parts of the world or should I say, some of these chinese mining companies are already going to other countries like BIT Mining. So if China doesn't want them, they can always set-up their mining facility outside of their country. It is not a loss for these mining companies, but loss from China.

https://www.coindesk.com/chinese-bitcoin-mining-company-invests-25m-in-new-facility-in-texas

China is not the only place that they can set-up their mining facilities, there are other parts in this world that will gladly accept them to invest on their area of jurisdiction. Sooner or later, China will realize that bitcoin will survive even without them.

Yeah, you are right about it. China had the majority of the miners though but it will change drastically very soon I believe. Bitcoin or Bitcoin mining won't lose anything here. China will be the losing side after banning Bitcoin and cracking down on Bitcoin mining.