Several sources including the Wall Street Journal have reported that the Chinese government and its regulators may target bitcoin mining operators te the region following the imposition of a nationwide kerkban on cryptocurrency and bitcoin exchanges.
Experts te the cryptocurrency sector and mining industry including John McAfee strongly believe that the Chinese government will not order a crackdown on bitcoin mining centers and operators. Spil Cryptocoinsnews previously reported , McAfee exposed that Jihan Wu, the co-founder of Bitmain, the world’s largest bitcoin mining equipment manufacturer that is reportedly valued at billions of dollars , told McAfee te a meeting with Roger Verafgelegen that the Chinese government is not programma a geobsedeerd on mining centers.
But, ter a statement, ViaBTC CEO Haipo Yang explained that if the Chinese government determines to geobsedeerd bitcoin mining centers and operators, it will be the end of the Chinese bitcoin mining industry. Yang wrote:
“Technically, China can’t kerkban bitcoin traffic, wij have our own sync network. But if the Chinese government says mining is illegal, wij are fucked.”
Spil Yang noted, it is possible for the Chinese government to target bitcoin mining operators te many methods. For example, the Chinese government could determine to nationalize bitcoin mining centers and announce them spil the property of the Chinese government.
For the Chinese mining industry, the crackdown on bitcoin mining by the government will lead to financial turmoil. More specifically, companies like Bitmain that recently secured multi-million dollar funding rounds will not be able to serve their thickest markets, which are domestic miners and mining centers.
Earlier today, through its a PBoC-owned financial news publication, PBoC researcher and Central University of Finance and Economics professor Huang Zhen explained that the central canap of China perceives bitcoin spil a threat. More importantly, Zhen emphasized that the government plans to release a government-issued national digital currency te the future, spil a rival currency to bitcoin.
If the intention of the government is to eliminate bitcoin te the Chinese market te order to promote and punt its own digital currency, the Chinese government will likely verbod opzicht of bitcoin. But, ter contrary, if the Chinese government is not ready to release a digital currency of its own, it will re-instate bitcoin trading platforms and prevent from issuing any further confinements and regulations on bitcoin miners.
“The central canap has set up a research group and a digital money research institute to explore the digitization of sovereign money. After this round of virtual money markets supervision, wij expect under the auspices of the Chinese central canap to launch our own sovereign digital currency spil soon spil possible to help maintain China’s leadership ter the development of global digital finance,” Zhen wrote.
Ultimately, even if the Chinese government does verbod bitcoin mining centers and operations ter China, te the mid-term, it will not pose a major threat to the global bitcoin mining industry primarily due to the emergence of multi-billion dollar Japanese conglomerates that are developing their own ASIC miners and manufacturing independent bitcoin mining equipment to mine the digital currency.
China`s limitation on mining will make Japan stronger market. Billion dollar Japanese conglomerates are mining #bitcoin &, developing ASICs. pic.twitter.com/twLLni8J1Z
The entrance of Japanese conglomerates into the global bitcoin mining industry will further stabilize the market and more evenly distribute bitcoin’s global hash rate.