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China is home to the vast majority of cryptocurrency miners, its energy cost being extremely low compared to the rest of the world. But as the Bitcoin price gets a new lease on life, lawmakers in the country are planning to ban mining from among 450 other activities that are considered dangerous, that waste natural resources or pollute the environment.
The news is largely seen as a FUD in the cryptographic community, which has become accustomed to the threatening cryptography of China in the past. Others think that the news is really optimistic for Bitcoin and could help the first, each cryptocurrency to become more decentralized.
The crypto community is questioning about the ban on the exploitation of bitcoin in China
Morning of South China reports that the National Commission for Development and Reforms (NDRC) has revealed a preliminary list of industrial activities that the government is interested in restricting or outright prohibiting, including cryptocurrency extraction.
Related reading | Crypto Analyst: the high price of bitcoin confirms the trough of the bear market
Due to China's dominance of the Bitcoin mining industry, both from the point of view of BTC's actual exploitation as well as manufacturing platforms that support the activity elsewhere, the 39; whole crypto industry is armed this morning as a result of the news.
Of course, China is afraid of bringing out the trolls. Let's be clear: the prohibition of road-level extraction in China does not mean that it prohibits the manufacture of drilling rigs. This does not mean the end of Bitcoin. One would think that the maximalist trolls would have a greater confidence in themselves and a thicker skin.
– Emin Gün Sirer (@ el33th4xor) April 9, 2019
Emin Gun Sirer, professor at Cornell University and founder of Ava Labs, went to Twitter to dispel the FUD and dispel any confusion as to its meaning for Bitcoin. As he points out, the mining platforms will not stop, and the news certainly does not mean "the end of bitcoin". Other analysts and investors in crypto simply ignored the news.
"China says it wants to eliminate bitcoin"#Bitcoin Fud pic.twitter.com/t11kNWD695
– WhalePanda (@WhalePanda) April 9, 2019
China has repeatedly shifted its position on cryptocurrencies, but overall, it has not been welcoming to the new financial technology and the new asset class.
What does China's mining ban mean for the Bitcoin price?
Sire suggests that the previous "Chinese FUD" has led to a bullish action on the prices of Bitcoin and other cryptocurrencies, but qualifies the effects of recent events as "rather weak".
Historically, news of this type ("China FUD") has been correlated with rising prices. Although, to the extent that FUD affects consumers, it remains rather weak. The impact is on minors, not regular users.
– Emin Gün Sirer (@ el33th4xor) April 9, 2019
BTC continued to be under $ 5,300 resistance after a rally of nearly $ 1,000 early last week, which began when Bitcoin was over $ 4,200. The price remained broadly stable despite BTC's largest mining source that could be excluded from the activity.
Related reading | Bitcoin Price Surged Plus in 1 hour than the last two months combined
Regardless of the lack of price action in response to this news, many positive implications for Bitcoin could result from such a ban.
Bullish for 2 reasons:
1- higher costs elsewhere
2- more decentralization– Der_Kil (@ilk_erd) April 9, 2019
China can no longer dominate mining by Bitcoin, the network will become more decentralized and therefore safer in general. In the past, it was said that China had the means and potentially the motive, destroy Bitcoin. The motive may remain, but the means will be considerably reduced if the NDRC responds to the proposed amendments.
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