Opinion: China’s crackdown on miners confirms Bitcoin’s resilience

Restrictive measures against Bitcoin mining should be viewed positively, as they confirm the ‘soundness’ of the first cryptocurrency. This view was voiced by miner Brandon Arvanaghi in an interview Bloomberg.

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The former security engineer at the Gemini exchange believes that governments around the world are currently forming a consensus on Bitcoin. China’s actions could become a positive factor in the medium- and long-term prospects.

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Arvanaghi saw this as an inherent stage in the development of any open technology.

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He compared Bitcoin’s evolution to a video game. In it, a drop in hash rate and/or geopolitical confrontation (‘the boss’) will eventually be defeated. In the end this will inevitably lead Bitcoin to the status of a store of value.

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The expert predicted that China’s role would move to the United States, where mining could become a major industry. He named Texas and Florida, capable of offering conditions for economically efficient cryptocurrency mining.

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The same view is shared by David Marcus, head of Facebook Financial, who described the news from China as a “magnificent turning point in Bitcoin’s history.”

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How is more #Bitcoin mining power moving to the 🇺🇸 and the West a bad thing? IMO China cracking down on mining is a great development for BTC.

— David Marcus (@davidmarcus) June 21, 2021

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Journalist Colin Wu cited a Caixin article in Chinese. Sources at the publication saw in the crackdown on miners a manifestation of Beijing’s policy against combatting excessive CO2 emissions and a withdrawal of support for mining farms.

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Caixin, a media most recognized by regulators of China, said: The Chinese authorities have decided to move towards a carbon-neutral green transformation, and they don’t care about so-called «Bitcoin pricing power». China no longer welcomes the mining farms.

— Wu Blockchain (@WuBlockchain) June 22, 2021

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As of writing, Coin Metrics puts Bitcoin’s network hash rate at 104 EH/s, BitInfoCharts at roughly 100 EH/s.

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As noted, on June 21, the NYSE-listed mining company BIT Mining Limited reported the successful delivery of the first batch of cryptocurrency mining equipment to Kazakhstan.

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