We've seen it time and time again... China banning crypto exchanges and the mining of Bitcoin as a whole. This is nothing new to the crypto community throughout the years, and it's not necessarily bad news either. Although the charts have been falling lately and the FUD has been astronomical throughout social media platforms, let's take a look at why China banning crypto is actually a good thing overall for the longevity of the market! Besides... there's many other countries mining Bitcoin and other cryptos currently. Decentralization is the way to go... right? Let's dive in!
I am not sponsored by anyone or anything mentioned in this article.
This is not financial advice. I am not a financial advisor.
Please do your own research before making any decisions before investing.
This article is meant for educational purposes only.
For most of the community, it's been difficult to see the silver-lining during this time of high market volatility. With the latest news coming from China, they are ordering the province of Sichuan to shut down all Bitcoin mining operations. This turned many heads, as the Bitcoin mined in Sichuan was mainly operated by hydroelectric power. The crackdown coming from China isn't all that bad... and here's why.
- Bitcoin mining becomes more decentralized.
- Bitcoin mining will begin to adopt more clean, renewable energy sources for maintaining operation moving forward.
- Bitcoin miners in other countries throughout the world will become more profitable.
- Other Bitcoin miners will, in theory, receive more mining rigs from China at a cheaper price due to them being inoperable in the previous largest Bitcoin mining country. This should also lower the price of rigs in the future... at least until other operations buy them up!
Not only does this benefit Bitcoin miners, but it should benefit the community overall as well. Speculatively, this should kill the FUD surrounding China and Bitcoin. We've seen it all over the place - "China controls Bitcoin!", "Bitcoin is using dirty energy!", "China bans Bitcoin!". With China halting the operation of Bitcoin mining and crypto exchanging throughout the country, any new news of banning it will also come to a halt as there will be nothing to ban any further. There will be no miners, no exchanges, and nothing to "control" any longer. As Bitcoin mining mainly uses clean energy when being mined in other parts of the world, China's main power source for Bitcoin mining operations was done via burning coal.
While this news may seem striking at first, it's always important to sit back and look at the bigger picture. Not all "bad news" is bad news. It doesn't seem like it immediately, as we can tell from the consistently dropping market over the past month or so, but long-term these should just appear like bumps in the road. After all, the market is still up in value overall from where we were sitting only a year ago. Take a deep breath, relax, and do your research of course! Also, Happy Father's Day to all the dads on Publish0x!
Do you think the crypto community overreacts to FUD news?
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