Bitcoin (BTC)Cryptocurrency

What is happening with Bitcoin? An Overview of the Impact of China’s ban on Crypto Mining

The move of Chinese authorities to shut down various mining farms of Bitcoin (BTC) in the past few months may place it as no longer the center of the Bitcoin operations. Only yesterday, the power supply of the 26 mining farms has been cut off by authorities on the orders given by the local government stating the termination of the electrical supply.

The three provinces of China named Inner Mongolia, Xinjiang, and Sichuan were referred to be prominently relied on by most of the mining farms of BTC (Bitcoin) for their mining operations. Because of the abundant supply of profitable hydroelectric energy-generating dams on a vast level, the Chinese province Sichuan is the most famous for Bitcoin mining.

Bitcoin (BTC) community is shocked by the detrimental effect on the hash rate and the prices of the coin due to the inhibitory stance taken by the Chinese government against the mining farms. The hash rate of the coin had been lowered down, although it was later overcome, by 17% only as a result of the removal of mining farms in Sichuan in the most recent days.

According to Nic Carter, a partner and analyst at Castle Island Ventures, The aforementioned situation is not to be a concern. Carter had explained his views about the Twitter thread mentioning the closing of the mines in Xinjiang province in April. He put focus on the point that the actions were not to be afraid of. He further suggested that a big move would be the migration of the miners to the other regions providing them with the allowance to mining without restrictions. Moreover, he propounded that the Chinese ban over crypto mining will not be able to collapse it. However, a momentary shortfall in the hash rate and the coin price is expected but nothing more. Carter elaborated his ideas further in his YouTube video, saying that a larger perspective of the policies in China has been provided by its ban on Sichuan Bitcoin mining. He revealed that there is no linkage between security and power; therefore, the security of Bitcoin (BTC) will remain intact no matter if the hash rate turns down even to 50%.

The migration of miners to other regions of the world is another thought-provoking action. Carter talked about this fact in his video, stating that it is extremely positive for both the risk of Bitcoin getting eliminated due to its security and the perspective of the ecological narrative. He concluded the discussion by mentioning that individual miners, as well as the Bitcoin community, would get advantages by this step on both the above-mentioned grounds.

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