Bitcoin

Bitcoin (BTC) Mining in China Begins Historic Moment


Sino Global Capital . has been published Reports On Bitcoin, China, and the changes occurring within the Asian Giant. Today, most BTC miners in China’s Sichuan province will turn off their machines. This created another variable in the already uncertain crypto market.

At 0:00 on June 20, mining farms in this province will be shut down. This region hosts one of the largest bitcoin mining operations in the world, 8BTCnews claims. Thus, some miners expect this sector to enter a dark age.

8BTCnews claims that the impact of this crackdown is starting to spread across the BTC mining sector. The ten largest bitcoin mining pools by hash, AntPool, Poolin, Binance, Huobi Pool, and others, are posting significant losses in their computing power. These losses go from 16%, 21%, 25% and even 31.19% on the last day.

In general, the The Bitcoin network has an average computing power of 129.52 EH/s. It’s nearly 30% down from its all-time high. This is reflected in Mempool’s BTC and its transaction cost, at the time of writing, is at some of its lowest levels in 2021 with 19 sat/BB ($0.96) for a high priority transaction. Dodger minimum fee is 1 set/forum.

Source: Mempool Space

Bitcoin Mining Predictions, Total Darkness?

Sino Global Capital offers an objective view of the situation that can only be interpreted as bearish for Bitcoin. The investment firm claims that while a portion of its BTC mining operations will be shut down, some will remain.

Moreover, a portion of the miners with large side operations were already leaving the country, and it seemed that medium and small sized people were likely to stay. Mobile miners have been anticipating a crackdown since March 2021. So they made the necessary preparations.

As more crypto-mining bans were issued in May from Beijing, Qinghai, Inner Mongolia, and Sichuan, with the stated goal of achieving financial stability, Chinese miners have accelerated their migration to other countries.

Sino Global Capital thinks about China It addresses sectors that endanger national economic stability, bitcoin mining, and leveraged cryptocurrency trading. The state can also target activities that enable corruption at the state level.

The miners adopted 3 actions: they started selling their equipment, staying to see how regulations went, and migrating. The investment firm anticipates that the distribution of miners on the move will vary.

The overseas migration destinations of Chinese miners are diverse and evenly distributed among North America, Central Asia, Russia, Northern Europe and North Africa. This is actually a positive and significantly increases the decentralization of the Bitcoin network.

Nick Carter, partner at Castle Island Ventures, agrees that the BTC migration from China will bring more decentralization to the network. In addition, Carter believes that BTC mining activities can be moved to places where they will operate using 100% renewable energy.

At the time of writing this report, Bitcoin is trading at $35,562 with sideways movement on the daily chart. On the 7-day and 30-day charts, BTC lost 4.4%, respectively.

Bitcoin BTC BTCUSD
BTC is moving sideways in the daily chart. Source: BTCUSD TradingView





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