In this article I want to talk about China’s recent Crypto crackdown and how it might not be as bad as everyone suggests. We will look especially at the Ethereum miners. Like always, this is not financial advise and for entertainment purposes only.

Ethereum pools suspend all operations

Two of Ethereum’s largest mining pools are closing down in China. First to go was SparkPool, which is closing all operations by September the 30th. Further Pools like BeePool, Alibaba and Binance have also reacted to China’s crypto crackdown. Alibaba for example will not sell any mining equipment anymore. Furthermore, BeePool will close its operations by October 15th, which seems to be the date when the crackdown will begin.

This development is quite concerning, especially because the biggest part of the Ethereum mining is practiced in China. Looking at the Ethereum price or its hash rate it seems to be the case that these events didn’t have a bigger impact on Ethereum. This suggest something very good: Other miners are expanding and developing their pools in other places despite the coming transition to proof of stake. Another reason might be that a lot of miners already left China and rebuilding their workplace elsewhere, because of the previous China-regulations in May.

Conclusion

This is a major indicator for me that the crypto space is getting immune against government regulations and that it will be very difficult to get the whole crypto space under a centralized control. At the end, this is the whole purpose of a decentralized system. Nevertheless, I believe that despite these good reactions during bad times, crypto will soon something that everybody has to deal with, and this is some bullish indicator for me!

Published by ga38jem on Publsh0x on the 4th of October 2021