Topic: A Crypto Blessing: China’s Plan to Ban Bitcoin Mining Will Work Wonders (Read 647 times)

They're trying to discourage everything to do with bitcoin and cryptocurrency in general because they can't control it's price.

According to the following, they want to issue a cryptocurrency version of the renmimbi:

https://cointelegraph.com/news/official-chinese-currency-renminbi-to-become-cryptocurrency-expert-says

Miners do not really have to leave their country, they only need to transfer out their operations. These are rather different things. Considering also that most big China based miners actually had very close relationships with power providers,,, I remember a lot of them had individual deals with hydro companies,,, I think more is made out of the issue than really is.

I think we shouldn't forget one very important thing regarding China's plan to ban Bitcoin mining. China is a very corrupt state. Bribery and theft of public funds costs at least three percent of China's GDP. Corruption is wide spread not only on the lower levels of society, but on the highest levels as well. Many high ranking government officials have been found guilty of corruption in the recent yeas. So, this "plan to ban Bitcoin mining" can be simply a way to compel big mining companies to bribe some government officials so that they wouldn't carry the law into effect.

I would say that most miners won't leave their country unless mining is the biggest source of income that they have, and the only one sustaining them. It is *possible* that miners will move their operations out of China, but I don't think most will if they have another form of employment. They may move the equipment out of the country and have it managed by international members, but it's a lot harder to move citizenship between countries than you'd think. Doing all of that just to keep mining Bitcoin is dicey.

All of your other points are correct, however. Hobby miners won't get anywhere (still) and most industrial miners will continue to get bigger.

Unless you have the most advanced mining equipment and you join a pool then you have no chance of making profits, bitcoin mining stopped being the field of hobbyist long time ago, Chinese miners only have to move to another country with cheap electricity and everything will be back to normal for them and if they are smart they are not going to do all of this at once which means there is not going to be any window of opportunity for miners like you.

Regardless of restrictions there will always be a way to run the show and I believe same thing will implied in China as this country has so many restrictions when it comes to crypto but there are people who does mining for their living and I am sure they will find one or the other way out to do it. But the sad part is that the mining is not as profitable as it was before a year and a half.

If the Chinese government prohibits mining Bitcoin, I think that nothing will change. About the prohibition of mining Bitcoin in China, they say about two years. During this time, many with their farms left China for other countries and there are mining cryptocurrency. So I do not see any problems. Let them finally decide in China what they want, and this uncertainty that has been going on for two years is annoying.

I kind of hope this happens because this will give the hobby minres at home a chance to make some profit.  Right now the giants like Bitmain are sucking every drop of profit from this market leaving virtually nothing for the little guys.

I guess no matter how that difficulty turns out in the end there will be a small time period where everything will get stuck and the transaction fee will get up. Maybe it will an hour maybe it will be a week but in the end we will have that trouble. China not allowing miners doesn't mean the Chinese will stop, they can just move to anywhere they want because they have that type of power and money to do that, all they have to do is move their miners to a new location and they can continue like nothing happened.

There are miner friendly countries as well who give good discounts on big usage to get taxes from their earnings, that is why I doubt they will stop, this is just stopping Chinese "government" involvement in mining, otherwise Chinese people will still be involved for sure.

China isn't as united as it may seem. There are various government bodies with different layers of laws, and not only Bitcoin related parties benefit from that.

Most miners have started last year already to slowly migrate to other countries with how China isn't exactly that cheap anymore in terms of electricity, and this hasn't anything to do with the government(s) there. Some parts of China have been suffering from drought for quite a while now, and this significantly increases the electricity prices. If you add the bear market that made the price lose a lot of its value, it basically forces miners even more to look for alternative countries.

In the end, the mining aspect has had to deal with so much fud throughout the years, yet it has never gone through many problems at all. The problem is playing out between people's ears.

Exactly, and when I read this my first thought was that there was a major spin being put on the story.  The miners can't mine in China?  They can move.  It's not more decentralization, it's the same miners in different geographic regions.

No wonder I don't read news, cryptocurrency or otherwise.  It's all more slanted than the leaning tower of Pisa.

Is this a blessing? If all China miners stop mining bitcoin how much time will take for 1 bitcoin confirmation? If China miners stop mining the mining difficulty will be the same as before?

Bitmain have started spreading to other countries though? Bitdeer isn't in China and I think they'll probably move a lot of their miners there (they have a lot there already). So bitmain might still dominate the mining industry.

Nope. We have that difficulty adjustment thing. And there are enough miners elsewhere. They've been slowly migrating. Anything China does to push BTC out gets a thumbs up from me. Nothing good has come from Chinese involvement. They've been a cancer since they arrived.

I agree many can argue that the money drain from China will be reduced but to be quite honest will it? Look at Canada for example, Vancouver has been dubbed the ERNAI CITY for Chinese to take on 2nd wives and Mistresses, in order to get their foothold in another country. It's being done on a large scale by Rich Chinese Men in general. Here also, we have many Rich Chinese getting European passports by buying luxury properties. Nothing wrong with that at all, investing in different countries, that's what rich people do, but I doubt they blocking mining in China will stem the flow of money OUT of China. Bitmain and other miners will just move to pro blockchain countries like Vietnam or Latin America where the electricity is cheap and keep mining, taking away jobs from China. What I do see though is an electronic Yuan coming and a more centralized digital currency taking a foothold in China. Blockchain is not discouraged in China, on the contrary, you got coins like TRX, TRON run by great Chinese Businessmen with a wonderful acumen for business, it's just that Bitcoin seems way too decentralized now for the Chinese Govt to be able to control. Every country, of course, needs to do what it needs to do to protect its own. I understand the philosophy behind the Govt there. Make our currency strong then we can adopt other stuff..

I don't think banning crypto mining in china is a blessing to us, because the last I checked the miners are in charge of protecting the network and also confirming transactions on the blockchain, this means that once this miners are banned in chinese, we might see a lot of delay in the confirmation of transaction on the blockchain which will lead to a high transaction fee since smaller miners will now be the one to confirm all the transactions on the bitcoin blockchain.

Just because the mining doesn't physically occur within China doesn't mean it wont remain controlled by the same Chinese actors. This comment is ignorant at best. As long as people keep using Chinese pools, they will keep the power. If you are a miner, you must not mine in:

• Btc.com Bitmain
• Antpool Bitmain
• F2pool
• Poolin
• Viabtc Bitmain?
• BTC.top Bitmain?
• dpool
• Huobi

Notably missing from the top used pools is Slushpool which is not Chinese, but represents 10% only.

Decentralizing bitcoin mining is not only a matter of getting mining to several countries other than China, we also need that new players get into developing mining equipment since Bitmain has something very close to a monopoly going on and that cannot be something good for the community, I am not suggesting to get rid of Bitmain I just want to see more companies designing equipment for mining and taking away some of the market share of Bitmain.

I really don’t think it will have effect, they only banned mining and not the use of cryptocurrency, the reason why they could easily ban mining is because of the effect of it on their power, since we know that crypto mining consumes power, I am sure they have the technology to know where such heavy usage is emanating from.

So if they ban mining, other countries are available to continue with it, it is no big deal, in fact, many of us believe that the ban of mining will reduce the supply we have in the market making the demand to become high and in response to such, generate a high demand that will push the marketcap higher than it is now.

So, I checked out the page they are referring to by clicking "revealed" in the article. Here's the link to that page:

http://www.ndrc.gov.cn/yjzx/yjzx_add_fgs.jsp?SiteId=318

I don't speak Chinese so I used the "translate" option of my browser to see the English version. I know that translation is most likely far from being accurate, and still I'm wondering why are there no such words as "Bitcoin", "mining" or "blockchain" in the whole document?

Anyway, from what I understand, it's just a suggestion, or rather a draft of suggestion, intended to get feedback from public for further corrections. But I think people who speak Chinese can enlighten us better on the matter.