Topic: April 15th Price Drop, Hash Rate Drops As Blackouts Instituted In China (Read 271 times)

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Define a motive behind the media reporting a long list of patently false content which negatively influenced bitcoin's value, over the last 10 years.

Define a motive behind false reports of binance offices in shanghai being raided, false reports of tether being "market manipulation" to "artificially prop up the price of bitcoin" in 2017.

Define a motive behind the public being bombarded with false stories about quantum supremacy being achieved. Another inaccurate media report trend which crashed the market value of crypto on more than one occasion.

Give me a better explanation for these aspects of history.

China reserved virtually all of its crypto related bans for occasions when bitcoin's price peaked at an all time high. They timed their bans with BTC ATHs. Or for cases where bitcoin's price began to breakout of sideways trading. If that doesn't illustrate a motive, what does.

If this is true, then it gives governments and anti-Bitcoin billionaires another idea of how they can put a leash on the crypto market. I wouldn't be surprised if some electrical companies in countries with a high concentration of bitcoin miners shut down or get bought out in a few years. But if this is fake news meant to spread fear and negatively affect the crypto market, well, someone's successfully maneuvering online media. Either way, it signals to buy, at least for those who failed to invest last year.

What "evidence"? You've posted nothing except your own conspiracy theories with no actual facts to back them up. You're asserting that China is taking actions with an intention to manipulate the bitcoin price. What has happened in reality is that China took regulatory actions and the price dropped as a result.  Just because a price drop has been correlated with past actions by Chinese regulatory authorities doesn't mean those actions were taken with the intent of crashing the bitcoin price. Assuming that was the case, what was the reason? Did China accumulate a bunch of bitcoin after that?  That would have to be the logical conclusion to believing something so ridiculous, and the fact that it didn't happen means you must believe they just intended to crash the bitcoin price for no reason.  It makes no sense.

At the same time I do think we have to understand the fact that even if the supply is cut off the hash rate would recover because it's an amazing opportunity for the people and the institutions to take over the mining power and luckily people do wait for situations like these.

For example the company North data AG working in the US which is actually the biggest in the industry might see this opportunity to expand their company even more , precisely why I highlighted the name and place was because many people do think all the biggest mining operations happen in China. Well no.

Plus I do think for the time being we should be able to recover without china since they are usually always engaging in wars which might create a situation where everything would be focused on the military... Thus blackouts would be more or so common !

If this is a fake news to create FUD planned by China, I guess they succeed since the market drop is very huge and many are still panicking to see their holdings dropping without even sending a warning.

The drop of hash rate might be the reason why the fee of Btc before is too expensive, and a huge traffic in the network just like what happened before, its good that now its slowly coming back.

I am not convinced at all of any correlation between the price drop and the hashrate drop. Bitcoin does not have less value just for a small drop in the rate up to a certain point. A different thing would be a substantial drop, like a 35% or more which could actually mean some real trouble and not just a few blackouts Technically, anything below 50% is irrelevant really.

It is really up to the crypto user if he will buy or not, or how strong his beliefs that btc has bright future. A lot will see this opportunity to buy more, whereas, others are having hard time to buy because of the risk of losing their hard-earned money. No one can precisely predict the future, so it is left on your instincts how you will act on this market. And every individual has their own decision on this matter.

China doesn't control anything. Mines being located in China doesn't mean they're controlled by China. Mines still have to compete with each other, no matter where they're located, so you're assuming that all miners located in China will think the same which itself is obviously faulty logic. All the conclusions that result from an illogical premise are therefore suspect.

Those saying that this is the right opportunity to accumulate bitcoins, how sure are you about that? What if it’s not going up again anytime soon and keeps dropping after you might have accumulated? No matter what it is going to be, we all still have to be very careful with the choices we are making at this point. If you feel you should buy now, still do so with a little amount since you’re not 100% sure whether the price will boom immediately they are done with investigating the accidents they are talking about.

There are many reasons why the fall of Bitcoin has occurred, some think that it is because of the blackouts in China, others believe that it is because of the fiscal measure that Biden wants to put in the US, others like Warren Buffet that do a lot of FUD to Bitcoin and Crypto claiming that cryptocurrencies are like a game, but really the hash problem I don't think is that relevant, in fact in the US it now represents 7.6% of the global hash, the other percentage corresponds to China.


Source: https://u.today/bitcoin-hashrate-moving-to-america-as-us-mining-pool-enters-top-five

Blackout causing much severe damage to the prices and there is no sign of the clog will clear in the next few days so holders can expect further drop on bitcoin prices until things back to normal, currently, the prices went below 50K while the number of unconfirmed transactions remains in the 200K region which is the highest recorded number of unconfirmed transactions after that 2017 and early 2018.

It's not horrible, its a fact of life.

BITCOIN has evolved from an anti-government defiance to FIAT to just another scam to depopulate the earth and murder people, just like FIAT. Who would have known, who could have thought?

I do agree, that BCH was fascinating to watch, and (ant/baba/alibab/jacki-ma) BITMAIN tried really hard, buy accepting BCH as a payment for BITMAIN miners, but that was four years ago. I think today CCP in control, they can do as they with with BTC given they control +67% of the mining on earth.

CCP has every right to do with BITCOIN as they wish, its their country that's getting polluted, they own the hardware, they make the hardware, they run the majority of miners. They OWN BITCOIN.

I too don't give a rat's ass about Bitcoin prices, but Peter Theil last month came out and warned the world that CHINA's ownership of bitcoin was going to bring big problems, and now they're here.

I'm glad one person on this site, comes clean and admits the "CHINA" problem, I have been aware forever of this 'problem', but it often seems that this site is just a CHINESE disinformation site to downplay the truth. The truth of course is that BITCOIN has made 1,000's of Chinese rich, but mostly by scams, even todays Alibaba scams people on miners that don't even exist takes orders and collects fee's that will never be returned, as the miners ( and graphics cards will never be shipped )

IMHO the real turn was Trumps Tariff's, that seems to have turned the attitude of always giving the west, the benefit of doubt, which is why I suspect that CORE won the last battle(BCH), but you aren't going to win anymore battles. It's clear that CHINA is now going to flex its muscles.  CHINA is going to use its monopoly advantage.

Your partially right, but like the blind men with the elephant, sort of wrong.

COAL is a major problem, but the real problem is historically in CHINA from the begin the miners were near HYDRO, but in recent years everywhere here in ASIA, the rivers are running dry
In order to keep these miners running, and remember we're talking about the equivalent of entire country of power wasted like say Argentina, in terms of powering these BITMAIN miners that burn 3,000KWH each, and they can be lined up to the moon.

Something has to be done, in order to mine bitcoin do we kill everyone in CHINA with smoke from coal??

I know the BITCOIN community don't care about human life, they only care about HODL, and mis-information and lies and get rich quick.

The CCP has to make a decision, they go slow. Jack Ma owner of ANT ( all hw & mining ops ) is under house-arrest, CCP has taken over in the coming months we'll learn what they intend to do with the BITCOIN "PROBLEM".

The Suez Canal has not experienced a serious blockage in decades.

Bitcoin mining has not experienced a serious power outage in more than 10 years of operation. Operations being industrial in nature. They might have backup generators which would activate and provide electricity in an emergency. Suddenly these extreme and perhaps improbable events are becoming normalized. But are they normal.

There is a chance that china deliberately ordered mining operations to shut down. To use it as an excuse to highlight how 30% of bitcoin mining is powered by coal. This is the fault of the state for subsidizing coal power. If subsidies weren't involved miners would use hydroelectric, wind or solar. They're cheaper and more affordable.

If anyone should be held accountable its subsidized coal. Crypto mining is an industry which would overwhelmingly be powered by environmentally friendly power. Subsidized coal pays crypto miners extra money to power their operations using dirty coal based energy instead.




The evidence says the opposite.

Many of bitcoin's largest price drops can be traced to negative news related to china.

China apologized and took a softer stance on bitcoin. They're guilty. They don't want hedge funds, banks and whales invested in bitcoin to retaliate against them for crashing the price.

Some sort of monopoly? Im aint surprised even though it cant really be fully controlled but we arent blind on not to notice on how China did really make out some impact
on just simply having that hashrate drop due to Blackout but doesnt mean that this is completely over.If you are just making out investment then these are the times
which can be considered to be a sweet spot for you to take, wait for a bit more until the price on a potential bottom because once these things
get normalized then you would really be expecting for some change trend once again.

Wasn't there like 2 days between the hashrate and price drops? If there was some connection, it would have happened immediately. Like when that fake rumor appeared about the US investigating money laundering with cryptocurrencies, the price started dropping very quickly. Bitcoin's price isn't strongly connected to hashrate, we're still very far from 51% being viable economically even after this decrease, which is going to be only temporary anyway.

Were there any follow up reports to the inspection and the blackouts? I don't see its connection to the price drops, but certainly on the drop on hash power. There really isn't a clear line that connects what transpired on the 15th and what happened on the Xinjiang province, so I don't know if the thought that China is at it again on price manipulation is something really credible.

If the miners are experiencing constant power interruptions, maybe it's best to send off the equipment somewhere and start anew. It relieves the centralization issue and it eliminates the threat of government intervention in the future.

"Decentralized" , yeah right. China controls so much of the mining power in the world and that results with most of the hashes coming from them and being able to do something. Sure when miners want to change something that's not enough because all the transactions should be from miners and we know that it is not, there are tons of other people. Remember back in 2017 or something miners wanted us to not have Segwit and we still went with it and they created BCH to compete with Bitcoin and they failed miserably as you can see these days. Which means miners do not have that much power.

However if they want to they could play with the price, just close all the shops in china for one week and price of bitcoin will be under 40k and they can buy with all of their profits and then start back up and increase the price and it will profit them even more, that's horrible.

This is entirely giving China too much credit for price crashes. First, how is silk road closing partly attributable to China banning banks from trading Bitcoin? You'll have to explain that one for me because I don't see the connection.

Second, no, China is not fabricating news to negatively influence Bitcoin's price. Every time the price falls, it's not because of a conspiracy.

Third, why would the hash rate falling affect the price of bitcoin? It doesn't seem likely to be a cause and effect relationship.  The hashrate falling could only possibly affect supply for a maximum of 2 weeks before the difficulty is readjusted, and even then would only result in slightly less Bitcoins being produced than it would have otherwise, and it and I don't see why falling hash rate would affect demand.  Seems like these are only correlated by happenstance and not cause.

First of all, this kind of drop is always a good opportunity for all those who mostly complain that the price is too high, and there are a lot of them. Secondly, what has happened in China is a very good warning that something must start to change regarding the decentralization of hash power - which means that it might not be a bad thing for the Chinese authorities to gradually make life harder for local miners - whether it is done about denying them electricity, making it impossible for them to sell BTC via OTC, or banning mining altogether in some parts of China.

Only when China is at max 20 hash power will it no longer matter to us what is happening there, and until then the whole world has its eyes fixed on that part of the world because they are afraid of the moves of the Communist Party. However, the situation seems to be changing a bit because according to some data, the largest percentage of mining equipment is sold outside China.

This has been expected honestly. Since before that their energy company noticed the shortage, they were actually complaining in their community as it would affect their hash rate big time.

It just hurts that the location where the accident happened is the same location where the miners are located. Very unfortunate for the community. 50% is too much and will definitely cost a fortune. I guess if they could find alternative energy to provide power to the mining equipment would definitely reduce the risk at least.

i dont even know what u talking about, what coal mine you mean ?, well, about price, since the beginning , HashRate of mining its represent the price of bitcoin. to make it simple , hashrate is a kind of production cost in normal mining, the more miners are operating, the bigger the hashrate is created and it requires high production costs for the tool and its electricity, and of course bitcoin more valuable because it.

OP,I don't get your theory.
So you think that a power outage,which was caused by coal mine accidents means that China tries to crash the Bitcoin price?This doesn't make sense.
Are the coal mine accidents real or the Chinese government is fabricating an excuse,in order to shut down power supply to the Bitcoin miners?
I do believe that the coal mine accidents are real,which means that this hash rate drop(and price drop) isn't caused deliberately by the Chinese government.However,the possibility of China attacking cryptocurrency mining remains.

Doing a DCA might help with that feeling. Just buy regularly and forget it for a few months or years. History showed that you could gain a lot of money doing DCA instead of trying to swing trade your bags.

Good day to buy the dips I believe. Probably price would be back in a week or two with higher ATH aims. I thought for a day that these drops were caused by pretty big company who sells off their coins and taking profits.

It’s a great share! Thanks for this as I was wondering myself why the hell my portfolio is so down and why it is always me whenever I invest the crypto goes down. 
Now I know that it’s not my bad luck but it’s a technical glitch in the matrix!! So I’m pretty safe if we consider that this is temporary problem. Once the mining operations restore themselves to the original values it would just pump the whole crypto currencies to all new level. There will be surge for the buying and FOMO investment as the change would be major.

Definitely this one is not Chinese plot, from the news it’s clear that they wanted to do proper auditing of their infrastructure. Nothing bad in that considering the safety protocols.

So yeah, we are pretty good to go for the next pump soon. 

Most likely, China won't "ban all activities related to cryptocurrency." If at all, it might be the other way around. China is apparently getting more friendly toward Bitcoin. While China remains adamant in not accepting Bitcoin as a currency, at least it has already recognized it as an investment alternative. This alone is a very welcome gesture which should somehow send encouraging signals to its local market to consider Bitcoin as an investment option. This will definitely have an effect to the price.

As to the blackouts, I don't think they are a huge problem. As a matter of fact, if this ends up to be recurring and proves to be a bigger problem than what it seems right now then a big exit movement would start. That would still be welcome.

For someone like me who doesn't have a lot of bitcoin, I believe that it is a golden opportunity to buy because you get more value out of your money, and you will get bigger profits in the long-term which is proven already by the price of bitcoin overtime.

So the blackout had a decent impact on the price of bitcoin, I guess. A huge drop like this is a good indicator for whales to sell their bitcoin to create FUD, especially in the beginning of Q2. After taking profit, many of them may have had collected more and more bitcoin. I'd rather consider this event as a good opportunity to accumulate cheap bitcoin and altcoins.

Speaking of China, I wonder when they will finally ban all activities related to cryptocurrency. They keep strengthen the regulations but I guess it does not make any sense since bitcoin mining farm seems to develop in this uptrend

This looks like an amazing buying opportunity in my opinion.

As blackouts were planned by the administration due to recent accidents, there isn't much to worry about. After the safety inspection it is most likely that the power supply will come back as before and hash rate will raise again.

As this problem looks only temporary, hash rate and fees will come back to normal in a few days or weeks.

Everything related to China is commonly misunderstood and generates a lot of  FUD when BTC related.

BTC fundamentals look as solid as ever!

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A thread was posted on this topic in the bitcoin discussion section days ago. It only received a handful of replies. Many are still wondering what caused the drop. Posting this in the hope it helps answer questions.

It should be acknowledged that china has been a prime mover in many of bitcoin's largest price drops throughout history. The big drop around the time of the 1st silk road closing and Ross Ulbricht's arrest could partly be attributed to china banning banks from trading bitcoin in 2013.

It is even possible that china fabricates fake news to negatively influence bitcoin's price. As occurred with false stories of binance offices in shanghai being raided back in 2019.

China may be assuming a softer public tone to minimize negative public backlash associated with their numerous attempts to kill bitcoin's value over the past 10 years. I don't know if they need worry. Most appear to have forgotten china was ever involved.