China crypto crackdown sees mining businesses end operations, crashes Bitcoin price

midian182

Posts: 6,916   +62
Staff member
What just happened? It’s starting to look as if the meteoric rise Bitcoin has enjoyed since the end of last year is coming to an end. The crypto’s price has tumbled by around 50% since mid-April, a decline that’s been exacerbated by top cryptocurrency miners, including HashCow and BTC.TOP, suspending all or part of their China operations after the country announced another crackdown.

Bitcoin has been having a bit of a rollercoaster recently. It hit a record $65,000 in April but took a big hit when Elon Musk said Tesla would no longer accept it as payment for its vehicles due to concerns over the environmental impact of mining. The CEO then hinted that the EV giant had sold, or was planning to sell, its Bitcoin holdings, sending the price down further. Musk later confirmed that Tesla had not sold its BTC.

On Friday, a State Council committee led by Vice Premier Liu He announced the crackdown on virtual currencies as part of efforts to curb financial risks, writes Reuters. It is the first time China’s cabinet has targeted mining, a massive business in a country that accounts for up to 70% of the world’s crypto supply.

Huobi Mall, part of cryptocurrency exchange Huobi, suspended both crypto mining and some trading services to new clients from mainland China. It asked customers via its official Telegram channel “not to worry and calm down.”

Crypto mining pool BTC.TOP, meanwhile, announced the suspension of its China business, citing regulatory risks. “In the long term, nearly all of Chinese crypto mining rigs will be sold overseas, as Chinese regulators crack down on mining at home,” wrote founder Jiang Zhuoer. Additionally, crypto miner HashCow said it would suspend new businesses in China.

Despite its importance in the industry, China’s government is no fan of crypto; it banned exchanges in 2017.

China’s announcement saw Bitcoin crash to just over $31,000 yesterday, BTC’s lowest price since early January, though it has rallied slightly to around $36,000 at the time of writing. Ironically, its rebound was helped in part by Elon Musk tweeting that he prefers crypto to traditional fiat currencies.

Image credit: Ms. Li

Permalink to story.

 

Achaios

Posts: 142   +419
Told ya.

"RIP miners" part of the movie coming soon.

QUOTE
Not Musk, it was China.

Read:

[link]

REUTERS

Most miners and buyers thereof are Chinese ofc.

Remember the guys who had bought every RTX 3K laptop they could get their hands on and put them on mining? Chinese. Remember the guy who had transformed his house into a mining operation and filled every room with racks with hundreds of motherboards and GPUs? Chinese too.

It was a Chinese problem and China gave a solution.

UNQUOTE
 

NightAntilli

Posts: 671   +844
If they crack down on Bitcoin, Monero will simply take over, since that one is pretty much completely untraceable if you run your own node. No more farms though, because that would make it obvious that there's something going on there.
 

Watzupken

Posts: 248   +230
Told ya.

"RIP miners" part of the movie coming soon.

QUOTE
Not Musk, it was China.

Read:

[link]

REUTERS

Most miners and buyers thereof are Chinese ofc.

Remember the guys who had bought every RTX 3K laptop they could get their hands on and put them on mining? Chinese. Remember the guy who had transformed his house into a mining operation and filled every room with racks with hundreds of motherboards and GPUs? Chinese too.

It was a Chinese problem and China gave a solution.

UNQUOTE
Mining won't die just because China banned mining and crypto. Miners set up shop there likely because of the low cost of power. If they can't mine in China, they will just find another place that have not ban crypto and setup mining operations there.
 

Achaios

Posts: 142   +419
Mining won't die just because China banned mining and crypto. Miners set up shop there likely because of the low cost of power. If they can't mine in China, they will just find another place that have not ban crypto and setup mining operations there.

Will Chinese Miner Corps be eliminated? Probs not. They will move to SE Asia.

Will John Wu, the guy who bought 30 RTX 3k laptops and turned his whole house into a makeshift miner station stop mining? You betcha.
 

fl21289

Posts: 278   +373
They already moving to NA most likely Canada where a lot of miners have been taking over. Market is already slowly going back up. Sorry to burst everyone's bubble who want crypto to burn.
 

fl21289

Posts: 278   +373
Might ease GPU shrtage a bit , specially if "some" of those mining rigs are dismantled and sold off . BitCoin will climb back tho
China dislikes Bitcoin as its a competitor to its own digi-yuan, and not under its control.

Finally! Someone who knows exactly why China has been doing what they are doing. I've been trying to explain this to people and they all refuse to understand or listen. BTC will continue the bull run after this bear run. Every 21 days something happens to the Crypto Market.
 

emmzo

Posts: 297   +262
I would like to see a 1929 crash to remind people the intrinsic value of all crypto is ZERO. I`m sure it will come, but I`m afraid it could take some time. Let`s see who will blame China then for trying to protect its financial stability.
 

Angga B

Posts: 140   +119
For a commodity it's already bad that the market is so psychologicaly reactive to just one man's mouth. It is worse when the commodity is supposed to be the payment medium itself.
The idea of crypto is full of good intentions but in practice it still accumulate to the top elites. It ended up trying to replace one older corrupt system to a new one. Go blockchain, down with crypto.
 

arrowflash

Posts: 431   +466
For a commodity it's already bad that the market is so psychologicaly reactive to just one man's mouth. It is worse when the commodity is supposed to be the payment medium itself.
The idea of crypto is full of good intentions but in practice it still accumulate to the top elites. It ended up trying to replace one older corrupt system to a new one. Go blockchain, down with crypto.

That's the main issue I have with cryptocurrency. It's better than the fiat system, but not much better. Anyone who thinks otherwise is deluded. In the end it's another system where only the rich get richer - and thanks to the volatility, the poor often become poorer (so much for the "deflationary" claims...) - while the market is dominated and manipulated by a cabal of whales, just like in fiat.
 

BadThad

Posts: 572   +601
"It is the first time China’s cabinet has targeted mining, a massive business in a country that accounts for up to 70% of the world’s crypto supply."

If that doesn't send up the red flags for miners then nothing will. GOOD LUCK!
 

Austinturner

Posts: 231   +258
Crypto needs regulation in every country, capital gains taxes have to be collected, transactions over $10k need to be reported, mining operations bigger than hobby scale are businesses and need to be regulated as such etc.
 

NightAntilli

Posts: 671   +844
Crypto needs regulation in every country, capital gains taxes have to be collected, transactions over $10k need to be reported, mining operations bigger than hobby scale are businesses and need to be regulated as such etc.
Why...?

I hope you realize that taxes are there to make the rich richer and the poor poorer...
 

Austinturner

Posts: 231   +258
Why...?

I hope you realize that taxes are there to make the rich richer and the poor poorer...
Taxes are how as a society we capture some of people’s productive efforts as contribution to the greater good. Richer people and companies do unfortunately exploit the system, that just needs more enforcement and adjustment to rates, capital gains tax is one of the best ways to capture more of the share of rich people’s productive efforts as contributions to society which is what I’m advocating for here.
Taxes are not theft, everyone must contribute to society.
 

NightAntilli

Posts: 671   +844
That's the main issue I have with cryptocurrency. It's better than the fiat system, but not much better. Anyone who thinks otherwise is deluded. In the end it's another system where only the rich get richer - and thanks to the volatility, the poor often become poorer (so much for the "deflationary" claims...) - while the market is dominated and manipulated by a cabal of whales, just like in fiat.
There's nothing stopping anyone from becoming a miner.

Crypto has created a large group of wealthy people, and most of them are new wealthy people. The old farts don't understand the tech, and the main reason for all the FUD is the old wealthy people trying to maintain their power.