Understandably, investors and traders alike have been waiting for a big break in the crypto space. Experts have cited several factors that could lead to the next crypto bull run. Not just a bull run but a bull run that will be sustainable not one that is short-lived. One example of such a move is the likely ban of Bitcoin mining in China by the Chinese authorities. How will China’s plan to ban Bitcoin mining push up crypto 2019? Will crypto every recover to its glory days?
Bitcoin (BTC) Price Today – BTC / USD
The NDRC in China Has Labeled Crypto Mining in the Country a Waste of Energy
Chinese authorities have chosen to checkmate crypto-mining in the country. The NDRC (National Development Reforms Commission) in China has revealed that crypto-mining operations are merely a “waste of resources” going on to claim that the activity pollutes the Environment.
China’s decision to ban mining in the Asian state is open for public opinion until May 7. The date in which the Government will continue its clamp down on the crypto-mining industry.
China Has Held the Number One Position for the Most Dominant Crypto-miner Around the Globe
China controls 60% of Bitcoin’s total mining hash rate. Mining has thrived in China because of:
A broad range of chip manufacturers have the ability to design and create mining hardware.
- Cheap electricity rates
- China has an abundance of coal which can be used to provide energy for miners.
- China is one of the biggest manufacturers of technological hardware around the globe.
- China hosts four of the largest mining firms in the world including BTC.com, F2Pool, Antpool, and Pool.
Apart from the above-listed reasons, there are also individual miners and smaller mining pools in the country. Hence, it is possible to reach the conclusion that China holds about 70% of the mining energy around the globe.
Plan to Ban Bitcoin Mining in China Could Have a Huge Negative Impact in the Coin
There’s a number of considerations should China’s plans play out. Most importantly, a ban on Bitcoin and crypto mining operations in China could actually have serious implications or a negative impact on the BTC harsh rate. The hash rate will plummet.
How much is bitcoin today?
The price of Bitcoin [BTC] at press time is $5,279.14 according to Coin Market Cap. It is trading 30.15% higher from the 4000 dollar mark it has held during the second half of March. Hence, the ban might hinder the growth of the business and Bitcoin could plummet to new lows.
However, Mati Greenspan, who serves as a Senior Market Analyst at eToro has cited that the move by Chinese authorities to ban mining in the Asian state, would actually help the crypto prices and Bitcoin fundamentals.
Finally in the long term, as the total mining difficulty decreases due to a reduction in the number of miners. It will create an avenue for a global opportunity for users around the globe to set up miners. This will likely favor the sector in developing countries like India, Canada, Brazil, and South Korea, which has cheaper electricity cost like China.