Topic: [2017-09-19] China Cryptocurrency Ban Only Fuels GPU Sales: RBC (Read 3395 times)

I am sure that many Chinese right now are exploring their possible options on how to continue getting involved in Bitcoin without being eyed by their government. Soon, there can be viable options available to them. It is just sad that the government they have remains to be backwards in thinking and could not sleep that they can't control a cryptocurrency like Bitcoin. As to the possibility that China would also be banning mining, this can be a good opportunity for other countries to step in into the mining space. As said by someone, there is no opportunity lost it is being taken by someone else. 

How do we reach out to the Chinese cryptocoin community to start home mining or start offering their storage spaces to earn Storj or Sia? We should not give up on the Chinese people. There are many of them who still want to be engaged in the cryptospace.

And it's much less obvious to neighours, or your electricity provider, that something unusual is going on.

And hey, home mining in China may just become much more usual anyway if super draconian measures against cryptocurrencies ensue, the Chinese state (or any state for that matter) is only ever really effective at "cutting the heads of flowers that grow too tall". 100's of millions of people in China mining (or using other resources to obtain Bitcoin) are going to be impossible to stamp out effectively, yet again without turning China into a wholesale facsimile of the North Korean state. PRC could kiss their world economic standing goodbye if so.

And if mining were banned, I expect the Chinese market (and those of surrounding states) will be flooded with mining units from the large mines that are shut down, and they'll be sold pretty cheap in order to get the sale done quicker.

And in addition, mining ASICs will still likely be manufactured in China, the Chinese government is only too happy, upto now, to allow very loose control over electronics manufacturing, as they're all too aware that the state is profiting from the copying of copyrighted electronics for years now. It's going to be incredibly difficult for the Chinese state to put the Bitcoin genie back in the bottle, and of course, this was Satoshi's intention when he developed Bitcoin's design.

There is actually another way for Chinese people to "buy" Bitcoins legally: purchase Bitcoins via Sia or Storj, offering storage space on a hard disk and getting altcoins as a reward that can be changed into BTC. I described the process in this thread. (I see I should update the thread with new price data ...)

At a first glance, it seems quite expensive, but analyzing the method carefully it could be even more convenient than mining because electricity costs are much lower.

What can the Chinese government do to stop the growth and production of cryptocoins in their country? Ban mining? They are also taking a risk in banning it, because if they fail that will make them look weak and incapable of handling or controlling decentralized technology.

That is very dangerous for a government who wants authoritarian control over its citizens.



In a research note to clients, RBC’s Mitch Steves wrote that the ban of cryptocurrency trading in China will “likely increase the demand for crypto-currency-related GPUs,” required by cryptocurrency miners in order to mine new coins.

“With the China ban, the only way to obtain crypto currencies mined with GPUs is to now mine them with computing power (or purchase them in person from a stranger). China is now banning VPNs and straight purchases (Fiat -> Crypto), which means the best way to obtain the currency without purchasing it is to mine it using GPUs (ASICs for Bitcoin),” wrote Steves, suggesting that individuals looking to obtain the digital currencies will have to do so with more computing power, “given that it is the only legal way.”

Read the full article http://www.investopedia.com/news/china-cryptocurrency-ban-only-fuels-gpu-sales-rbc/