China’s Bitcoin ban is short-term negative, long-term positive

[Cullly]

Quote - “Historians will write that China had a majority of hashrate within their geographic borders, yet they made decisions that pushed that hashrate into more democratic and capitalistic societies. Just as North Korea chose to embrace the internet only for the elites, China is making a similar mistake here. As if that wasn’t bad enough, China’s plan for a nation state digital currency is similar to North Korea’s internal “internet.” As we have discussed over and over again, open systems beat closed systems. The Chinese approach of banning an open monetary network in pursuit of a tightly controlled monetary system is unlikely to be seen as an advantageous strategic move for their citizens. But just like North Korea, this decision will be helpful in continuing to consolidate power and ensure the longevity of the dictatorship.” - Anthony Pompliano

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[thecodebear]

Well yeah absolutely. China kicking out bitcoin mining does absolutely nothing to hurt bitcoin. All it'll end up doing is make mining more geographically decentralized.

China banning bitcoin mining makes Bitcoin stronger than ever (and one less thing for bitcoin critics to bring up as well).

The Chinese government has really shot their nation in the foot over the years with their fear of Bitcoin. They used to be the dominant player in what will one day be a market worth tens of trillions of dollars, and instead they chose to ban it. It really is similar to the self-inflicted negative impact of North Korea not allowing citizens access to the internet. Free countries celebrate bitcoin, oppressive countries attack it, while Bitcoin just keeps growing.

[pooya87]

“Historians will write that China had a majority of hashrate within their geographic borders,

This already happened years ago since for many years China hasn't had "majority of hashrate". I speculate that only about 20% of the hashrate is currently located in China, the rest is spread across the globe. Unfortunately people usually confuse "mining pool" (which a server that miners coming from all around the world can connect to) with "mining farm" (which is actual hashrate). There are multiple mining "pools" owned by Chinese that have majority of hashrate among them but there aren't enough mining farms in China to get "majorith of hasharate".

[covfefe_]

Bitcoin is going forward however the government around the world tries to act. Some miners are going to suffer and the price is going down for a bit but overall everyone would benefit from it. Miners around the world have better edge and decentralization would improve.
China's bitcoin mining bust is going to be bad for China. Chinese are one of the largest holder of bitcoin and they have realized that their government can't confiscate that property. It would further make people and business insecure leading to further buying and holding of crypto. They can always redeem it going aboard.

[Wexnident]

Well, it's just China trying to impose themselves as a country where they are in control of almost everything, and Bitcoin runs contrary to that. I'd honestly say it's wrong, but with how their mindset of how they should run their country works, it wasn't really an odd thing to happen. It isn't even the hashrate that they're going to regret, it's the fact that they let go of Bitcoin, something that the world would slowly transition, if not already transitioning into right now.

[Kakmakr]

I think one of the biggest advantage of China's decision, is the shift of the hashing power.... because it has been a long-term debate and other countries even perceived that as a threat, because they were saying China was having a monopoly on the Bitcoin hashing power and that they might execute a 51% attack with that power.  

It seems as though some miners in China has been shutting off their miners and they have been shifting it to Japan and other countries, where the governments are more positive on Crypto currencies.  

[wendy sy]

What happened to all the FUD that Bitcoin is too centralized because of China's miners? They're getting kicked out, and mining will become more decentralized, this is GOOD NEWS.
Somehow the BTC naysayers spin this as the new FUD. Newbies don't get too scared, powerful forces trying to buy your stash on sale, don't let them.

[davis196]

Quote - “Historians will write that China had a majority of hashrate within their geographic borders, yet they made decisions that pushed that hashrate into more democratic and capitalistic societies. Just as North Korea chose to embrace the internet only for the elites, China is making a similar mistake here. As if that wasn’t bad enough, China’s plan for a nation state digital currency is similar to North Korea’s internal “internet.” As we have discussed over and over again, open systems beat closed systems. The Chinese approach of banning an open monetary network in pursuit of a tightly controlled monetary system is unlikely to be seen as an advantageous strategic move for their citizens. But just like North Korea, this decision will be helpful in continuing to consolidate power and ensure the longevity of the dictatorship.” - Anthony Pompliano

I agree with that statement,but cryptocurrency miners still haven't left China,despite all the regulatory pressure and FUD coming their way.
I guess that most crypto miners still like going business in China,because they have some advantages,that cannot be easily found in other countries-cheap electricity,cheap labor,cheap real estate,etc...
Moving their facilities to other countries won't be that easy.
We can't be sure that the miners will move into more 'capitalistic and democratic societies'.What if they move to Russia or Kazakhstan?Miners are interested in having cheap resources and affordable electricity.They don't care that much about the democracy or political situation of the country,where they want to start their business.

[bryant.coleman]

These arguments will not remain practical until we remove the Chinese monopoly from the manufacturing of mining rigs. I don't understand why Taiwan or Korea manufacture mining rigs at a rate which is affordable to everyone (electricity is expensive in these two countries, so my preference would be Russia or Vietnam). Still, some diversification is badly needed. For those who are not aware of this, the three largest Chinese manufacturers (Ebon International, Bitmain and Canaan Creative) account for more than 90% of the global market share in Bitcoin mining rigs. Then there are smaller Chinese companies who hold most of the remaining share. 

[hatshepsut93]

What's so good about over a billion of people losing access to easily buying and selling Bitcoin and legally using it as a currency? It's quite negative for long term of Bitcoin, though it was kinda expected for a long time already and it's not really going to stop Bitcoin. Would you be cheering if even more countries in the world have banned Bitcoin?

[stompix]

I speculate that only about 20% of the hashrate is currently located in China, the rest is spread across the globe.

How can you say that after what happened in Xianjing? We had a forced closure of mining farms, documented even by Chinese miners and the hashrate dropped to 30% exactly on that day, as soon as they reopened the hashrate went back to normal.

Plus the 20% is simply ridiculous, you're basically saying Bitmain has decided to ship more gear to partners than to fill its own farms and feed bitdeer which is constantly sold out for thousands and thousands of 100-500 THs plans. We know for a fact bitmain had almost 200 000 miners in 2020 at their disposal, everyone knows bitmain mines the shit with new models before selling them to others, just thinking they would be handling that many miners to others, and on top of that all those miners to be outside china is ridiculous, sorry but that's the word for it, ridiculous.

On top of that, mines in Sichuan are still mining, the rainy season is still in full swing yet this is how the hashrate looks for the last month:
- 15.97 %   , - 5.30 %     , and now the pace shows -17.86 and it ain't over yet.

20%? No way in hell!

It seems as though some miners in China has been shutting off their miners and they have been shifting it to Japan

Japan?
Japan has one of the highest prices in energy and more importantly, all its grid is deepened on coal and gas imports, what makes you think they will welcome a power-hungry business there?

[mk4]

What's so good about over a billion of people losing access to easily buying and selling Bitcoin and legally using it as a currency? It's quite negative for long term of Bitcoin, though it was kinda expected for a long time already and it's not really going to stop Bitcoin. Would you be cheering if even more countries in the world have banned Bitcoin?

Don't you know? Everyone should be hating on China!/s On a serious note, the only somewhat-positive I see here is concerning mining; "better" hashrate distribution and all that. Other than that, no not really. Looking past the price, this is definitely very bad news for the people of China mainly.

[nhaila]

China a widely populated country in the world majority Bitcoin users are in from china . So bans cryptocurrencies in china has a strong influence in cryptocurrencies market. But most of the projects investors and traders think it's a unstable situation.

[Fortify]

Quote - “Historians will write that China had a majority of hashrate within their geographic borders, yet they made decisions that pushed that hashrate into more democratic and capitalistic societies. Just as North Korea chose to embrace the internet only for the elites, China is making a similar mistake here. As if that wasn’t bad enough, China’s plan for a nation state digital currency is similar to North Korea’s internal “internet.” As we have discussed over and over again, open systems beat closed systems. The Chinese approach of banning an open monetary network in pursuit of a tightly controlled monetary system is unlikely to be seen as an advantageous strategic move for their citizens. But just like North Korea, this decision will be helpful in continuing to consolidate power and ensure the longevity of the dictatorship.” - Anthony Pompliano

The Chinese government wants the Yuan to succeed over all else at the end of the day and they were content to ignore Bitcoin while it was earning them a fair chunk of cash. More recently the cash it has generated has been offset by the bad reputation for dirty fuels used to power the miners and there is little more important to the elites at the top than "losing face" among the world. Bitcoin is pretty insignificant compared to the actual fiat currencies that are in use and getting traded around the world each day - it has become simply a commodity hoarded by the richest to aid diversification within their huge portfolios. The sort of people sitting on large amounts of Bitcoin right now are the billionaires who buy football clubs and mega-yacht's - that money doesn't mean much to them as they will earn in back with little fuss in future. The Chinese government also doesn't like the idea that CCP officials or rich business people could be smuggling money out of the country in many ways undetected.

[TangentC]

It seems as though some miners in China has been shutting off their miners and they have been shifting it to Texas,
where the governments are more positive on Crypto currencies.  

Fixed that for you.
Thanks to Bitcoin Miners, Texas is now the new home for soon to be constant rolling blackouts.
And in ~3 years the next place to ban bitcoin mining forever.
If they can last that long before the bitcoin miners excessive waste crash their power grid.  

[speedy963]

Gotta hand it to this Anthony Pompliano guy for having such great insight. Although it may seem pretty obvious with just common sense, not everyone is capable of using their common sense in a great way. Specially the leaders of countries that pin down the any crypto enthusiast in their country. Very selfish, dumb and short sighted. imagine just how dumb a leader can be to not see the potential of this industry and the benefits it can give to the people and the economical system as a whole.

[avikz]

Quote - “Historians will write that China had a majority of hashrate within their geographic borders, yet they made decisions that pushed that hashrate into more democratic and capitalistic societies. Just as North Korea chose to embrace the internet only for the elites, China is making a similar mistake here. As if that wasn’t bad enough, China’s plan for a nation state digital currency is similar to North Korea’s internal “internet.” As we have discussed over and over again, open systems beat closed systems. The Chinese approach of banning an open monetary network in pursuit of a tightly controlled monetary system is unlikely to be seen as an advantageous strategic move for their citizens. But just like North Korea, this decision will be helpful in continuing to consolidate power and ensure the longevity of the dictatorship.” - Anthony Pompliano

I second the statement. It's a short term negative but long term positive. China has an authoritarian government who tries to maintain absolute control on everything within their country. So a free monetary system like bitcoin is essentially seen as a threat by the Chinese government. So they have done exactly what they do best - banned it!

But I strongly believe that it's definitely good for bitcoin. Too much Chinese intrusion is not good on anything. Bitcoin is no difference. So if the Chinese are leaving the market, that's a net positive.

[tranthidung]

This already happened years ago since for many years China hasn't had "majority of hashrate". I speculate that only about 20% of the hashrate is currently located in China, the rest is spread across the globe. Unfortunately people usually confuse "mining pool" (which a server that miners coming from all around the world can connect to) with "mining farm" (which is actual hashrate). There are multiple mining "pools" owned by Chinese that have majority of hashrate among them but there aren't enough mining farms in China to get "majorith of hasharate".

I appreciate your excellent point. Mining pool is just brand new and I can connect my rigs to any mining pool I want, if they don't restrict my national IP. Unfortunately, because there is no way to get exact numbers, and no public and transparent report about it, people only guess and believe that most of hashrate is in China. They believe so because China is a biggest manufacturing location of the world and also for ASICs.

They have reasons to believe so.
Farther perspective, it will be long-term positive changes for Bitcoin decentralized network, by higher decentralization in geographical locations of mining farms and ownership of hashrate.

[taufik123]

This short or long term will greatly affect the development of Bitcoin or cryptocurrency, China dealt a hard blow today, because China had a significant impact on the bears this time. The news of China expelling miners coincided with a death-cross when the short-term average price trendline crosses below the long-term average trendline.

this is not the first time China has stifled the growth of cryptocurrencies. China has been hampering the development of cryptocurrencies since 2017 and now it may be at its peak, driving miners out of China. Even though 50% of miners in China use renewable energy sources, China doesn't care.

[Shenzou]

I think that this may bring some advantages for the bitcoin community overall, since bitcoin have started getting popular people started questioning its decentralizations since china has the majority of the hashrate, and since it is going to take some actions regarding mining it, hopefully the hasrate that we lose from Chinese miners gets replaced elsewhere in  different parts of the world which will make bitcoin more and more decentrelized, so maybe the dip that we are getting right now will have some good outcome in the long term.