[2017-09-26] What Happens If China Bans Bitcoin Mining: 3 Scenarios

BitcoinPanther

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Quote from: ChromaticStar on September 27, 2017, 03:17:13 PM

Quote from: planfox on September 27, 2017, 02:20:54 PM

Quote from: ChromaticStar on September 27, 2017, 08:37:12 AM

Why do we need them in the first place, there's plenty of other countries that can mine BTC. If we lose the Chinese, oh well. Back to GPU mining at worst.

Loss of China. This is not good. There are big knots of miners there. It is very difficult to transport all this to another country. The Chinese government should change its attitude to the mining

Not really what I was thinking. Would a sharp drop in hash rate hurt BTC if China banned them? I don't think so, plenty of other coins survive with lower hash rates. If 90% of the hash rate was lost, what would happen? Anything besides a short-term increase in block times?

the sharp drop will be temporary and it will regain the hash power soon. There will be a new player on the mining industry of Bitcoin once China ban them. I also think that it would be China's lost if they ban these mining because these company somehow gives a huge revenue to the country by being a client in their electricity plus the taxation.

ChromaticStar

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Quote from: planfox on September 27, 2017, 02:20:54 PM

Quote from: ChromaticStar on September 27, 2017, 08:37:12 AM

Why do we need them in the first place, there's plenty of other countries that can mine BTC. If we lose the Chinese, oh well. Back to GPU mining at worst.

Loss of China. This is not good. There are big knots of miners there. It is very difficult to transport all this to another country. The Chinese government should change its attitude to the mining

Not really what I was thinking. Would a sharp drop in hash rate hurt BTC if China banned them? I don't think so, plenty of other coins survive with lower hash rates. If 90% of the hash rate was lost, what would happen? Anything besides a short-term increase in block times?

planfox

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Quote from: ChromaticStar on September 27, 2017, 08:37:12 AM

Why do we need them in the first place, there's plenty of other countries that can mine BTC. If we lose the Chinese, oh well. Back to GPU mining at worst.

Loss of China. This is not good. There are big knots of miners there. It is very difficult to transport all this to another country. The Chinese government should change its attitude to the mining

hatshepsut93

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Quote from: Karartma1 on September 27, 2017, 01:20:47 AM

Akin to how metals and other commodities are extracted, digital currencies follow a similar pattern through an activity defined as “mining”. The process describes the efforts undertaken to unlock more units of a digital currency. These activities involve the solving of increasingly complex mathematical problems for which miners are compensated with a certain amount of the digital currency for their efforts.

More @ http://www.investopedia.com/-/what-happens-if-china-bans-bitcoin-mining-3-scenarios

Unlike with precious metal, creating new coins is only a secondary goal of mining, while the primary goal is to secure the network from double spending attacks and create consensus. If you would close some gold mines, it would have no effect on properties of gold, while closing mines in Bitcoin would mean that attacking the network will become easier. Usually hashrate follows the price, but there's some minimum amount of hashpower needed to make attacks imprtactical. I'm sure that even without Chinese miners there will be no prtactical double spending attacks, as they would still be too expensive to execute and would result in a future loss for atackers, by making their equipment produce less value as the result of Bitcoins crash after successful attack. So, whatever would happen if China will ban mining, Bitcoin network will continue to operate as usual and that's what really important.

ChromaticStar

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Why do we need them in the first place, there's plenty of other countries that can mine BTC. If we lose the Chinese, oh well. Back to GPU mining at worst.

Carlton Banks

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Quote from: Lieldoryn on September 27, 2017, 05:38:49 AM

Why would the Chinese do that? When the Chinese are buying bitcoin, they withdraw capital from the country, but when they mine coins and sell them for hard currency in the amounts which now provide Chinese miners is to attract investment in the country. Do you think that the Chinese government is so stupid to give up the income?

And let's all think about that a little more clearly: legal Bitcoin in China is actually a drag on the yuan denominated BTC price. Miners sell into the market in large quantities, and presumably take the majority of their profits in yuan. Banning Bitcoin will cause the yuan to crash against BTC over the long term, and banning mining will simply make the crash worse.

It's like this when a government "bans" any good, depressing the supply is easier than depressing demand. And eliminating either supply or demand is not possible.

Lieldoryn

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Why would the Chinese do that? When the Chinese are buying bitcoin, they withdraw capital from the country, but when they mine coins and sell them for hard currency in the amounts which now provide Chinese miners is to attract investment in the country. Do you think that the Chinese government is so stupid to give up the income?

Slow death

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if that day comes the panic will be so great that the price of bitcoin will fall a lot, china may have cheap electricity, but it has a very dangerous regime, people who live and have business in china must be very brave people

pitham1

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If you compare it to the natural extraction of minerals, there is a difference. There is no automatic reset of difficulty in the physical field. In Bitcoin, after the required blocks are found, difficulty will readjust and we will live in the new normal.

Karartma1

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Akin to how metals and other commodities are extracted, digital currencies follow a similar pattern through an activity defined as “mining”. The process describes the efforts undertaken to unlock more units of a digital currency. These activities involve the solving of increasingly complex mathematical problems for which miners are compensated with a certain amount of the digital currency for their efforts.

More @ http://www.investopedia.com/-/what-happens-if-china-bans-bitcoin-mining-3-scenarios

Topic: [2017-09-26] What Happens If China Bans Bitcoin Mining: 3 Scenarios (Read 3391 times)