China's game plan

[brainactive]

Seems like China is done with Bitcoin. Hash rate has dropped by over 60% in the last few weeks, which confirms that miners are exiting China for good.

How does a Bitcoin exit benefit China in the long term? What do you guys think is China's game plan?

A lot of chatter about this being "China's trillion dollar mistake". I don't think China's dumb, so keen to hear what they might have up their sleeves.

[Kong Hey Pakboy]

To be honest we don't really know but one thing that I am sure of when it comes to China's long-term plan is that they are planning to be a dominant country around the world because look at their expansion in Africa and their takeover of Taiwan, Hongkong and other countries in South China Sea.

[brainactive]

To be honest we don't really know but one thing that I am sure of when it comes to China's long-term plan is that they are planning to be a dominant country around the world because look at their expansion in Africa and their takeover of Taiwan, Hongkong and other countries in South China Sea.

I wonder if this is somehow linked to how much gold they have been accumulating.

[davis196]

Seems like China is done with Bitcoin. Hash rate has dropped by over 60% in the last few weeks, which confirms that miners are exiting China for good.

How does a Bitcoin exit benefit China in the long term? What do you guys think is China's game plan?

A lot of chatter about this being "China's trillion dollar mistake". I don't think China's dumb, so keen to hear what they might have up their sleeves.

China's game plan about what?Do you really think that the Chinese government really cares that much about the cryptocurrency mining industry?
Does an elephant care about a flea?
If the hash rate is really dropping and the miners are leaving China,that's great.We will finally stop paying attention to all the FUD coming from China and China will stop "banning" Bitcoin/crypto every week.
China has no benefit and no damage from kicking out all the crypto miners,because the miners influence over the Chinese economy is totally insignificant.
 

[NeuroticFish]

How does a Bitcoin exit benefit China in the long term? What do you guys think is China's game plan?

There are here 2 direction of thought:

1. China is known for big announcements that bring the price down. We don't know if and how much hash rate was taken down in order to be relocated and how much hash rate was just temporarily stopped in order to support the FUD/pump and dump game. And yes, I tend to believe that China together with N Korea may play pump and dump games with Bitcoin.

2. Bitcoin leaving China may be somewhat beneficial for their game. They are already beta-testing e-CNY. They gave out for free quite some nice amounts of their coin in order to have it spent and tested out. Bitcoin may be seen as an unwanted competitor for this project. And yeah, you may have to read how many things a govt can do with their own centralized e-coin, from surveillance to (automatic) seizing the funds of undesirables.

[Wexnident]

How does a Bitcoin exit benefit China in the long term? What do you guys think is China's game plan?

Well, they're thinking of it with their own mindset after all, while we're judging them with our own mindset as well. We all know how China is an advocate of pretty much wanting to be in control of literally everything in their country. That made them make the decision of making their own centralized crypto (since they acknowledge the usefulness of blockahin) and stop most actions that are connected to Bitcoin or crypto in general. Or that could just be a ruse, and China actually plays around the price of the market with these announcements intentionally to pump and dump it. Well, I'm more into the former compared to the latter though.

[BlackHatCoiner]

Hash rate has dropped by over 60% in the last few weeks

What? I saw it dropping from ~21 exahashes to just ~19.

China's game plan about what?Do you really think that the Chinese government really cares that much about the cryptocurrency mining industry?

I'm pretty sure, it does. The whole world faces a mania with cryptocurrencies right now.

If the hash rate is really dropping and the miners are leaving China,that's great.We will finally stop paying attention to all the FUD coming from China and China will stop "banning" Bitcoin/crypto every week.

It's not the country. I mean, I heard they went to Canada. Do you believe we'll not hear FUD from there?

China has no benefit and no damage from kicking out all the crypto miners,because the miners influence over the Chinese economy is totally insignificant.

China may indeed have no direct benefit from keeping their crypto miners, but I believe they could find their way to earn a profit or a tax by their power usage.

[NeuroticFish]

Hash rate has dropped by over 60% in the last few weeks

What? I saw it dropping from ~21 exahashes to just ~19.

Well, from what I see on Coinwarz chart, it was 191 EH/s in May and it's 89 EH/s today.
https://www.coinwarz.com/mining/bitcoin/hashrate-chart

[bitbenzhong]

1. China Gov disable mining because telecom faurd.
2. OTC Still legal in China, Spot Trading also.

Only represent my opinion

[Kong Hey Pakboy]

To be honest we don't really know but one thing that I am sure of when it comes to China's long-term plan is that they are planning to be a dominant country around the world because look at their expansion in Africa and their takeover of Taiwan, Hongkong and other countries in South China Sea.

I wonder if this is somehow linked to how much gold they have been accumulating.

I don't think see any connections and they don't have the biggest gold reserve in the world I think but they sure have a lot of it. Their game plan is probably to outlast other countries in terms of longevity.

[brainactive]

There are here 2 direction of thought:

1. China is known for big announcements that bring the price down. We don't know if and how much hash rate was taken down in order to be relocated and how much hash rate was just temporarily stopped in order to support the FUD/pump and dump game. And yes, I tend to believe that China together with N Korea may play pump and dump games with Bitcoin.

2. Bitcoin leaving China may be somewhat beneficial for their game. They are already beta-testing e-CNY. They gave out for free quite some nice amounts of their coin in order to have it spent and tested out. Bitcoin may be seen as an unwanted competitor for this project. And yeah, you may have to read how many things a govt can do with their own centralized e-coin, from surveillance to (automatic) seizing the funds of undesirables.

1. So you're saying the Chinese government told the miners to temporarily shut down their machines just to create FUD? Seems a bit far fetched to temporarily shut down 60% of the network. What's in it for the miners?

2. What about gold then? Why is China accumulating so much gold. Gold is arguably a competitor to the e-CNY too if you believe Bitcoin is a competitor.

[swiftbits]

China is one of the leading in developing its own digital money, not sure if it has something to do with why they regulate crypto ever since
Illicit activities are still detrimental; I think they want to have control in every situation.

[NeuroticFish]

1. So you're saying the Chinese government told the miners to temporarily shut down their machines just to create FUD? Seems a bit far fetched to temporarily shut down 60% of the network. What's in it for the miners?

I don't think that one can run a big scale business if the party doesn't know about it.
So it's actually possible to do this as a "return of favor" for allowing you to run your business and good electricity prices.

2. What about gold then? Why is China accumulating so much gold. Gold is arguably a competitor to the e-CNY too if you believe Bitcoin is a competitor.

e-CNY is central bank owned and, like the paper currency, needs to be backed by gold, nothing has change there. I think that you may be mixing up certain things...

[Charles-Tim]

How does a Bitcoin exit benefit China in the long term? What do you guys think is China's game plan?

Maybe the Chinese government believed they have growth in economy even when Bitcoin has not being created, that they can also make it without decentralized currencies. Although, before the Chinese government will think about this, there is no two reason that caused it but their digital Yuan. In my opinion, decentralized currencies would have played better part in Chinese economy, but we know China like to act like they are world of their own, that is why they have their own everything, like socioa media and the likes. Recently, miners (mining machines) are no more expensive in China while the manufacturing companies do not gain like before in such a way some reduced in price by three fold. This is what a centralized government can lead to.

We don't know if and how much hash rate was taken down in order to be relocated and how much hash rate was just temporarily stopped in order to support the FUD/pump and dump game.

The Bitcoin hash rate reduced almost 60%, I remember there was a time the hashrate gotten to its peak in May, 2021 to over 160E, now it is less than 64E, the hashrate was reduced by over 96E, that is over 60% reduction in hashrate. Although, all might not be linked to the Chinese fud, but the reduction happened at the time.

[brainactive]

The Bitcoin hash rate reduced almost 60%, I remember there was a time the hashrate gotten to its peak in May, 2021 to over 160E, now it is less than 64E, the hashrate was reduced by over 96E, that is over 60% reduction in hashrate. Although, all might not be linked to the Chinese fud, but the reduction happened at the time.

What are some other major reasons which may have contributed to the 60% reduction in hash rate? Besides China fud

[cabron]

After 10 years of dominating, the ones left for miners to mine are very few though compare to the ones they've mined before. I think China had already enough of BTC not to mention they own Chinese exchanges.

When manufacturing Chinese company receives USD for exporting products, the Chinese government will buy the USD from the manufacturing companies with Yuan thereby making the value of yuan constantly low as means for manipulating it. I bet they have also done this to the BTC miners which the government also buy the virgin coins.

[Charles-Tim]

What are some other major reasons which may have contributed to the 60% reduction in hash rate? Besides China fud

I am linking it to the Chinese recent total ban on decentralized currencies, nothing more than that in my opinion, but I am not absolutely sure as some analysts may give more reasons, but I have not seen reasons other than the this.

[Jating]

Seems like China is done with Bitcoin. Hash rate has dropped by over 60% in the last few weeks, which confirms that miners are exiting China for good.

Good for us, just a minor set back for bitcoin investors, but in the long term it will be good as the monopoly is broken already. Chinese miners could shift to other countries specially those big boys in the game. And then we have some country or huge companies that can take over specially in Europe.

How does a Bitcoin exit benefit China in the long term? What do you guys think is China's game plan?

Doesn't matter what their game plan is, as long as bitcoin will survived without them then nothing will change.

A lot of chatter about this being "China's trillion dollar mistake". I don't think China's dumb, so keen to hear what they might have up their sleeves.

Not sure if they still have some aces in their sleeves. But for now, we can't do anything about it. But the affected one are obviously those Chinese crypto enthusiast who have been in this game for so long. They can't do anything about it though, because of the total control of the Chinese government on their people.

[Kittygalore]

China is one of the leading in developing its own digital money, not sure if it has something to do with why they regulate crypto ever since
Illicit activities are still detrimental; I think they want to have control in every situation.

It definitely has something to do with it, remember that they don't like competition so look at what they did, they ban bitcoin and other cryptocurrencies so they can make way for their digital currency that is the antithesis of everything a cryptocurrency is.

[Iranus]

In fact, the liquidity of Bitcoin was having a huge impact on the Chinese banking system. Moreover, it is not safe for miners to be in the same place, if they are scattered in different parts of the world, this dominance of mining will be reduced and it is safe for both the parties. Personally, I think such a decision by the Chinese government is good for the future of Bitcoin. Many people have questioned the dominance of the Chinese in mining sector.