China are back to mining Bitcoin.

[Sim_card]

China thinks that without them bitcoin will fall, and every time, they come up with one or two reason to ban bitcoin, which their actions will affect the market for a short time. Bitcoin keep putting China to shame that she can survive and grow big without them, which makes them go back into bitcoin activities again. I don't know why the government cannot just understand that bitoin have come to stay and make the country a crypto friendly place once, so that the citizens and other investors can enjoy mining activities with rest of mind. I will not be surprised again if after the bull market, China announces that crypto has being banned again. A confused president that loves to control the life of his citizens, he will see bitcoin as a threat, because he hates the decentralized nature of it.

[beerlover]

I have always thought that crypto trading is illegal in China but from the few articles I just read it seems it was just restricted. I was thinking they one needs to use a VPN or other means to deal with cryptocurrencies because it was illegal. And citizens could be persecuted if they are caught engaging in crypto transact. However, it seems Bitcoin mining suffered stringent regulations which made many miners leave China for other friendly nations.

As others have said, I also believe that China might be regretting its negative stance towards mining because Bitcoin mining is now an important investment and revenue source. Bitcoin mining creates jobs, gives revenue to the government, and can be used for recycling activities. Chinese economists are suggesting that Bitcoin mining should be part of the already devastated Chinese real estate industry. They are suggesting that heat can be recycled to power Bitcoin mining rings in residential buildings so that they can also make extra income from mining. I assume China has a plan for the crypto industry and they are using Hong Kong to practice these plans.

Nope, that was never illegal to begin with. Individual mining was illegal, now government is allowing government owned mines, which is what this is about and nothing really major, but at the end of the day trading wasn't illegal. They even have exchanges there that works with their banks as well, and considering all banks are connected to the government, we can say that the government allows it, because the yare aware of the situation.

Of course there were situations with regulations, nearly as high as letting it be banned at that point, when you have very restrictive situation then you may see it as illegal and that could be understood but that doesn't mean that we are not going to make it work any other way.

[nngella]

Out of topic but the first thing that comes into my mind when reading the word "China", Bitcoin, and "mining" is the rise of prices of the GPU in the global market.   Are we going to witness the price of the GPUs to skyrocket, again?  Man! I am still waiting for the recovering of prices of the GPUs in our country but now it has some risks to become expensive again.
 
Going back to the topic, cryptocurrency is decentralized and China does not want their citizens to be part of anything that they cannot monitor (there is a reason why they are a communist country).  Hence, I think the Chinese government is skeptical to the use of the said technology.

[NotATether]

I don’t think mining was ever totally eradicated in China. Obviously, the government clamped down on it though & most people follow the rules. If China was to publicly unban mining & allow all retail investors to buy Bitcoin it’d be very bullish for the price. Part of the reason we only hit 69k last bull run was due to China FUD.

If China publicly unbanned it after they publicly banned it then it could be used by other countries as a political criticism against them. So that's why I also imagine they would announce these kind of things silently. Now obviously I think there are still restrictions on mining in China since they are aggressively pushing to be carbon neutral by 2050 or something, but it's not like you can't run a mining farm anymore AFAIK.

[stompix]

Out of topic but the first thing that comes into my mind when reading the word "China", Bitcoin, and "mining" is the rise of prices of the GPU in the global market.   Are we going to witness the price of the GPUs to skyrocket, again? 

There is zero need for GPUs for mining right now!
Even with these high prices with a 4090 at 5 cents per kwh (so well below average) you're going to make a profit of $50 a month!
This for a videocard that you can get for $1500 if you're lucky, so 30 months before ROI, good luck with that!
It's AI that's destroying the GPU market right now!

Nope, that was never illegal to begin with. Individual mining was illegal, now government is allowing government owned mines,

Source for this?

[o48o]

Gagnon also discussed the possible impact of Canada’s vast underutilized natural resources on the industry and touched upon the global dispersion of Bitcoin mining, highlighting the emergence of new mining markets, including China.

Gagnon, who spent time operating crypto-mining facilities in China, shared his unique perspective on the country’s mining ban and the recent expansion of Bitcoin mining in the nation. Contrary to attributing the ban to environmental or economic reasons, Gagnon suggested the decision was politically motivated.

   “When the China mining ban happened in 2021, I really don’t think it had anything to do with Bitcoin itself. I think it was entirely internal politics.”

This was either dumb or there are something lost in translation, or "political" has totally different meaning in china. As what is the scenario where it would have been something to do with bitcoin, but it wouldn't be political? Aren't environmental or economic reasons politically motivated? Literally every regulation ever is politically motivated. Sometimes those laws and politics just happen to fit with most people and parties, so they seem apolitical, even though one could form political party against them as well. Even the whole idea of decentralization is political.

But what comes to the article itself, i am only speculating, but i reckon there has just been more lobbying and right people in CCP have been paid off, and it can't be coincidence that regulations kick in when it's harder to make profit by mining.

Also, can it be more hilariously transparent when CEO of PoW mining company criticises ETH saying it's a "nail in the coffin for Ether" for moving to PoS?



It's old same "CEO of Horses & Wagons criticises cars" again.

[slapper]

China is back; or was it ever out? The prohibition was a distraction from global economic dominance. Think about it. Bitcoin mining is about power, control, and the new financial system, not just bitcoin. The Chinese government's flip is a deliberate strategy in a complex geopolitical chess game, not a crypto value epiphany

What about economic impact? Don't kid ourselves. Bitcoin mining's impact goes beyond miner profitability. It's about entering the digital frontier and safeguarding the future's financial pie. This is strategy, not charity. Bitcoin will boost China's economy, but at what cost to global power? Watch this space; the game is just starting

[Cryptomultiplier]

I have always thought that crypto trading is illegal in China but from the few articles I just read it seems it was just restricted. I was thinking they one needs to use a VPN or other means to deal with cryptocurrencies because it was illegal. And citizens could be persecuted if they are caught engaging in crypto transact. However, it seems Bitcoin mining suffered stringent regulations which made many miners leave China for other friendly nations.

As others have said, I also believe that China might be regretting its negative stance towards mining because Bitcoin mining is now an important investment and revenue source. Bitcoin mining creates jobs, gives revenue to the government, and can be used for recycling activities. Chinese economists are suggesting that Bitcoin mining should be part of the already devastated Chinese real estate industry. They are suggesting that heat can be recycled to power Bitcoin mining rings in residential buildings so that they can also make extra income from mining. I assume China has a plan for the crypto industry and they are using Hong Kong to practice these plans.

Nope, that was never illegal to begin with. Individual mining was illegal, now government is allowing government owned mines, which is what this is about and nothing really major, but at the end of the day trading wasn't illegal. They even have exchanges there that works with their banks as well, and considering all banks are connected to the government, we can say that the government allows it, because the yare aware of the situation.

Of course there were situations with regulations, nearly as high as letting it be banned at that point, when you have very restrictive situation then you may see it as illegal and that could be understood but that doesn't mean that we are not going to make it work any other way.

China doesn't want to be left behind as it aims to create a new world order with the BRICS currency. As also seeing other western and advanced societies long to institutionalize crypto currency and incorporate it into the society by allowing payments and transactions to be concluded using cryptocurrencies, the only choice besides the CBDC innovation aimed to discourage use of cryptocurrency is the regulated use of it.

Regulatory bodies have been created by the government of mostly every countries accepting cryptocurrencies now and it's the only way forward that the government aims to take control and keep crypto dealings in check.
There's no point in banning it I suppose, when the %10 revenue from miners fees can be used to better the economy and achieve the goal of dominance and new world order that ain't reliant on the U.S. and its dollar.

[kentrolla]

China thinks that without them bitcoin will fall, and every time, they come up with one or two reason to ban bitcoin, which their actions will affect the market for a short time. Bitcoin keep putting China to shame that she can survive and grow big without them, which makes them go back into bitcoin activities again. I don't know why the government cannot just understand that bitoin have come to stay and make the country a crypto friendly place once, so that the citizens and other investors can enjoy mining activities with rest of mind. I will not be surprised again if after the bull market, China announces that crypto has being banned again. A confused president that loves to control the life of his citizens, he will see bitcoin as a threat, because he hates the decentralized nature of it.

First of all it's not as black and white as we see it because there are lot of strategical thinking and Chinese government is very cunning as they want to dominate this market and banning crypto or mining is all part of drama as that's what it wants us to see while it have been mining and accumulating as source of wealth. It just cares about its own well being and it's poor citizens has to bear the burnt of sanctions and China cannot be friend of anyone and I don't think BRICS currency will be gamechanger because India will back out because it has more problems with China. China can never stay behind in technologies like mining but it has been running it in government controlled manner as ot has already removed private players through its ban and now it's all for government.

[bluebit25]

I've also heard a lot about how the Chinese government has started testing its own CBDC, the digital Yuan. And even some provinces in China have started allowing Bitcoin mining companies to operate again. And we also need to understand that adaptation is not imposed on behavior, whether supporting/opposing it is their action. Something that I'm quite excited about is that we will see a lot of positivity whenever the excitement of this sector returns.

According to the information I heard, the Chinese government does not officially encourage people to mine Bitcoin. There are some provinces that have started allowing Bitcoin mining companies to operate again. And we all know the upcoming Bitcoin halving event could have a positive impact on Bitcoin miners' revenue. The Chinese government may be reconsidering its stance on Bitcoin mining as Bitcoin mining may bring some benefits to the Chinese economy.

[Abiky]

China is back; or was it ever out? The prohibition was a distraction from global economic dominance. Think about it. Bitcoin mining is about power, control, and the new financial system, not just bitcoin. The Chinese government's flip is a deliberate strategy in a complex geopolitical chess game, not a crypto value epiphany

What about economic impact? Don't kid ourselves. Bitcoin mining's impact goes beyond miner profitability. It's about entering the digital frontier and safeguarding the future's financial pie. This is strategy, not charity. Bitcoin will boost China's economy, but at what cost to global power? Watch this space; the game is just starting

Of course. It has always been about power and control. If China adopts the revolution, it can increase its chances of global economic dominance. That's assuming it moves quickly in embracing crypto/Blockchain innovation before anyone else. The US could be left behind in the dust with its uncertain crypto regulations.

China is already one step ahead with the launch of a CBDC (the eCNY). It could support its economy by secretly mining Bitcoin. Russia could be doing the same. Who knows how China's Bitcoin mining operations will fare in the future?

[fullhdpixel]

People will never let China go because they still have some kind of belief that that country will embrace BTC again, and that this will result in an explosion of the price of BTC, because of course every Chinese wants to have Bitcoin - and that way the Chinese economy will be saved

What they completely forget is that things like Bitcoin can never get the green light in countries where communism still rules.

There are positive news I heard last time about cryptos in this country and that makes the people to fuel their hopes. Meanwhile, without the help of China, BTC is now starting to rise and still can explode.

Despite of being one of the innovative countries, I still don't think that each Chinese wants a BTC. Some don't even know what it is. Like I said earlier, they are already innovative, so I don't think their economy is struggling but it may experience some issues sometimes like what other countries are experiencing. It can be natural and there could be other solutions than it, not only Bitcoin because if we think about it, there is also no BTC back in time.

[btc78]

I don’t think mining was ever totally eradicated in China. Obviously, the government clamped down on it though & most people follow the rules. If China was to publicly unban mining & allow all retail investors to buy Bitcoin it’d be very bullish for the price. Part of the reason we only hit 69k last bull run was due to China FUD.

I think, and not just in china, even though cryptocurrencies are banned some people still find ways to participate and transact using cryptocurrencies. Of course it is only in discreet and they probably go long inconvenient ways just to do it.

However the government lifting up regulations against cryptocurrencies would firther invite more people into the market.

[prosmmservice]

Will this cause price increase of bitcoin.

[Fara Chan]

I think, and not just in china, even though cryptocurrencies are banned some people still find ways to participate and transact using cryptocurrencies. Of course it is only in discreet and they probably go long inconvenient ways just to do it.

However the government lifting up regulations against cryptocurrencies would firther invite more people into the market.

Of course, the lifting of this regulation by the government will have a quite big effect in inviting more people into the market this year, because previously in China itself there were still many users who carried out transactions secretly in the crypto market. Moreover, in the past there were many people there who already knew Bitcoin and the crypto market as a profit-seeking area for everyone, so now there is definitely an increase in crypto market users there because there are no longer any restrictions from the government.

[justdimin]

I don’t think mining was ever totally eradicated in China. Obviously, the government clamped down on it though & most people follow the rules. If China was to publicly unban mining & allow all retail investors to buy Bitcoin it’d be very bullish for the price. Part of the reason we only hit 69k last bull run was due to China FUD.

I think, and not just in china, even though cryptocurrencies are banned some people still find ways to participate and transact using cryptocurrencies. Of course it is only in discreet and they probably go long inconvenient ways just to do it.

However the government lifting up regulations against cryptocurrencies would firther invite more people into the market.

This is EXACTLY what the situation is all around the world. Since, crypto is not something you can follow as long as they do not put it in their own accounts, I would say it's definitely possible that people would still keep on using it.

Let's assume that you are Chinese, and you have no exchange account at all, you do a job for someone, and they pay you in crypto, you agree with someone, and then you sell your crypto, and then you "sell" something to them, not even sell it to be fair, and in exchange you get that money. Think of it exactly like money laundering but this time for not an illegal activity but for crypto cashing out. This is what they have done all during this time if you ask me.

[Volimack]

But the price of bitcoin has started to rise again so China understands how volatile this bitcoin market is and they think that if they find a way to trade here they will prosper. Even after China's ban many countries like it, other cryptocurrency miners have made a lot of money from this business. There are many people in China who are using crypto currency because the digital currency has no central authority or bank control so everything is secret and the number of crypto users is increasing day by day.

[lepbagong]

But the price of bitcoin has started to rise again so China understands how volatile this bitcoin market is and they think that if they find a way to trade here they will prosper. Even after China's ban many countries like it, other cryptocurrency miners have made a lot of money from this business. There are many people in China who are using crypto currency because the digital currency has no central authority or bank control so everything is secret and the number of crypto users is increasing day by day.

Is this the moment because bitcoin is on the rise, so that it is starting to make it easier for bitcoin mining again?
I don't think so, you are right because the people themselves have known and used cryptocurrencies for a long time, especially digital currencies, which are very familiar there. So it is very important for them to be able to carry out mining again because it is clearly very profitable for the community and, of course, for the government which can collect taxes from it., They are also aware of the previous ban where many other countries benefited from mining, and they want to reinstate it and that is a natural thing.

[martinex]

The biggest reason is that there are still bitcoins left to be mined and they know BTC will become the most global currency in the world where the results are also very commensurate with the costs incurred, maybe even more.

Yes. they want to always be at the forefront and dominate the number of BTC holdings even though there was a previous ban due to the many power outages which were considered disturbing due to the use of crypto mining and currently their expansion into the automotive industry with their cheap offers has flooded the electric vehicle market.

[Coyster]

China thinks that without them bitcoin will fall, and every time, they come up with one or two reason to ban bitcoin, which their actions will affect the market for a short time. Bitcoin keep putting China to shame that she can survive and grow big without them, which makes them go back into bitcoin activities again.

China never thought that Bitcoin will fail if they ban it, and that is not why they banned Bitcoin and cryptocurrencies. Part of the reason they did so is because they believe crypto aids illegal financial transactions and also because of the risks involved when buying crypto assets that are not really regulated. China is the country with the second largest economy in the world, so they would not care about banning crypto or not, because it does not affect their economy in any way. Mind you that China are yet to rescind their ban, because there has been no legitimate source to that news.