Could this crackdown be a good thing?
At least one Bitcoin mining engineer seems to think so. According to a new report, Brandon Arvanaghi points to China’s recent ban and crackdown on Bitcoin as proof that the currency is doing what it was always meant to.
It’s no secret that the Chinese regime is oppressive, and the state remains a textbook example of government control.
If The Chinese Communist Party felt a need to take action against Bitcoin then it is quite obvious that Bitcoin poses a threat to its interests and control over its own financial system.
China’s government recently issued The Digital Yuan, an electronic version of its own paper fiat currency, and it is clearly trying to be a competitor to digital money everywhere.
To the outside observer The Digital Yuan has little resemblance to or the same value as our most popular cryptocurrencies and digital assets we all know and love, but The CCP is hedging its bets on it.
It remains to be seen whether or not the world’s second largest economic power will embrace Bitcoin at a later date, or if their economic growth will continue in the face of a looming demographic crisis and the middle income trap.
Likewise, it remains to be seen if Bitcoin will always be king, or if it will be unseated by Ethereum, or some other new crypto asset one day.
Take a look at these recent reports and see if you agree:
— $uddenly $atoshi (@SuddenlySatoshi) June 13, 2021
A LOT OF MINERS migrating to North America as we speak and it just means US will control more of $BTC production than China.
— Zachary – Pro Stock (@real_ZLParker) June 21, 2021
Coin Telegraph had more details:
Arvanaghi called getting banned in China a rite of passage for free technology and stressed that the crackdown means that Bitcoin is working, not that it’s failing. “It’s making nations shiver in their boots,” he added.
He said that nations are now picking sides, with China responding to Bitcoin much as it did to major Western tech firms, which is incredibly bullish for Bitcoin for the long and medium-term.
Miners are currently flowing out of China — where a phone call is enough to shut down an entire mining plant — and into the United States.
“Bitcoin is the greatest store of value in the history of planet Earth; nothing is even comparable,” Arvanaghi said, adding:
“We are going to start valuing our wealth in terms of Bitcoin, and the volatility is the tax that we pay for being on the right side of this trade.”
China wants to crackdown the miner who are not using clean energy. This is good news for #Bitcoin
. Don't sell your BTC. I have not sold even a single Sat.https://t.co/To4zlt2J4X https://t.co/To4zlt2J4X
— Noman Latif (@NomanLatif51) May 22, 2021
The Block Crypto reported a drop in Bitcoin mining difficulty due to the recent Chinese Crackdown:
Bitcoin’s mining difficulty fell by 5.3% on Sunday night UTC on the back off a recent drop-off in hash rate. On-chain data shows the network’s mining difficulty dropped to 19.8 trillion, a level not seen since early January.
The mining difficulty is how the network aims to keep blocks being produced at an even rate, despite a wildly fluctuating hash rate. Every two weeks it makes the mining process easier or harder, in order to accommodate the varying hash rate.
After the previous difficulty adjustment on May 30, the network’s hash rate remained steady. But on June 9, miners in Xinjiang’s Zhundong Economic and Technology Development Zone received orders to close operations — a result of the China State Council’s high-level comment about cracking down on bitcoin trading and mining activities.
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