Topic: Inner Mongolia strictly reinforces Beijing’s Bitcoin mining ban (Read 260 times)

When miners have to leave China, they will lose their best place with cheapest electricity resources (assume they have cheapest source in China), they will find other nations with higher cost. Not all nations in the globe have dictatorship like China or North Korea.

We can not predict what will happen with mining in the future or what regulation governments will do.

With one mining company, has farms in different nations is not bad. For the network, it is not bad. If one nation crack down the bitcoin mining, the company will have farms in other nations, the network will not lose all hashrate from that company.

If one big mining company moves to a new nation, there will be new mining company in that nation, it is not bad.

As I said before, there are so many other countries that have similar or even lower electricity prices than China and miners will eventually move there or simply go underground in China.
We also know that youtube, twitter and some other platforms (who are now banning and censoring regular people btw) are banned in China but they use this services with vpn, and government can't do anything about that.
I heard latest news that Iran is also banning Bitcoin mining during this summer season to save electricity and reduce chances for restrictions, but they will continue as normal after that in autumn.

Chinese electricity is not cheapest in the world as you can see, but they are the source of asic miner chip production, that will still continue normally and easiest thing for miners would be to move to other neighbouring countries.
Even South American countries like Mexico and Argentina are very interesting for bitcoin mining but you can pick any country from list below showing prices for September 2020 for kWh per USD:


https://www.globalpetrolprices.com/electricity_prices/

Troubles with mining business might now affect the price significantly. Mining doesn't generate enough new coins to make miners significant hodlers affecting the market, and mining generally doesn't have much to do with the price dynamics, I believe.
If some miners are forced to leave, the difficulty rate will readjust soon. And as for big companies, I'm sure they have detailed plans for situations like the current one in Inner Mongolia, and they'll move or shut down temporarily. The threat of China restricting mining operations or even fully banning them has been in the air for years, so I'm sure that miners are well-prepared.

Again, this is short-sighted.
The first problem in the "this is good for bitcoin" is why were those miners sticking to mining in China in the first place? Because of lower electricity prices, if they go to another country they will pay more for electricity, the profit will go down, so will the hashrate, so will the security, an attacker will not need 160exa will need 100exa to perform an attack.
The second problem is that you take for granted the fact that once all that hashrate moves out of China they will flee to the other 10 countries and be distributed equally, no it will not happen! They will flee to the locations they get the cheapest available power and most likely they will concentrate all the mining in 2-3 countries at maximum, look at the mining outside China right now, is it spread evenly across the globe?
Thrid is that you don't even think of the possibility the new countries that will be flooded with miners might take a look at China's example and do the same.

There is nothing good for bitcoin in this ban, no matter how you try to spin it.


I don't think we can blame all the drop in hash rate over this China thing, but at the same time, a 15% drop is nothing "normal" if expressing it in old gear that might have been pushed out of the profit area of about 1,5 million S9 miners.
As for the drop, it's actually on every chart, from the block time to the actual hashrate.

We do not know for sure about that news but even if that can impact much to bitcoin price, bitcoin will not have a problem and will increase the price at the right time. I am not too worry about the bad news that will release in the near because I always believe that bitcoin can handle that and will have the time to rise again.

The bad news will not stop ruining the bitcoin reputation but bitcoin does not become too stronger than before and many people and institutions will support bitcoin. So nothing to worry about and still hold bitcoin.

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 Government can marginally restrict access, or even make possession illegal, but it cannot make something of value demanded by a broad and disparate group of people magically go away.

Well, if they are a province of China which I assume is only claimed by the Chinese government, then why the delay? Also, even if they stop mining in the region, Inner Mongolia is already polluted with a lot of coal mining in their region, I don't think that banning mining will be able to make any difference.

I don't know what kind of "crackdown on mining" this is that hasn't shown itself at all on the hashrate charts. I mean there is normal fluctuations in hashrate as there has always been and there is a big price drop compared to last month that also normally affects the hashrate slightly but apart from that we are seeing nothing else! and yet the media is running with the FUD as much as they can.

It can be a beginning of something. From China, miners can spread to 10 nations. It does not bring more decentralization for hashrate if one company has 10 mining farms in 10 nations but it can be a good change. At least for that particular company, it will not have to depend on policies in one nation. One nation can not crack down mining activities of that company.

It can be a noise for 10 nations and more new mining companies can be created in those 10 nations. Decentralization can not change in one day.

The way I see it, such decisions will only harm China and Inner Mongolia, so there's nothing to worry about. This will either lead to the relocation of miners to other spots, where mining is legal, or they will be substituted with others. It's a very competitive field right now, so when someone drops out of the game there will be plenty to take their places.
I wonder what will China do about mining, clearly, they are against any crypto-related activity, on the other hand, just enforcing a ban like that won't be easy for a country that accounts for >60% of all the Bitcoin mining.

Periodic restrictions on bitcoin mining have been happening in China since 2017. The questions to which countries miners left China to continue their activities have already been discussed more than once. As far as I remember, these were some areas of Canada, Belarus and Kazakhstan. Therefore, the remaining miners should already have a backup plan in case of a complete ban on their activities. I don’t think that this prohibition will significantly affect the price of bitcoin. It has been mined and will continue to be mined even if it is not in China.

So the news of the hour during this rally is that they are forcing the miners to move outside or face regulatory actions and since they are high profile miners with huge investments, they will be forced to move to other regions or sell off their equipment to other miners and some miners are selling off their equipment. Even last year they intervened in the market when they forced the exchanges to shut down or move out of the region and now they are forcing the miners to shut down or move out of the region and the timing of these decisions especially during rallies on both occasions is fishy .

Maybe it's bad in short-term, but in the long run Bitcoin will break free from constant fear of China banning it and it would be able to attract more investors because there's one less threat looming above Bitcoin. But China will probably never fully ban Bitcoin, because they might want to use it one day for some reason. If they wanted to fully ban it, they would have done it a long time ago.

Yes, we are hoping that this move from China will eventually force miners to locate outside the country and therefore if we are talking here long term this can be good for Bitcoin. I am so uncomfortable with the kind of influence that mining in China has with Bitcoin and if one day they will be getting out of the country then that will be a big welcome move. Bitcoin mining should be spread to as many countries or locations as possible. I think there are now also locations in the USA who are using renewable energy for mining purposes. Smaller countries in Europe are also welcoming the business of Bitcoin mining into their folds.

Many thanks for the insight into the mining situation in China. Sichuan is a mountainous province with plenty of hydro-electric potential, so they don't need to worry about the emissions. Both Inner Mongolia and Xinjiang are very arid regions and the electricity generation mostly comes from thermal power plants AFAIK. It is natural, since these two provinces also have huge coal deposits. I don't know whether it will be easy for the miners in Inner Mongolia and Xinjiang to move from thermal energy to solar or wind sourced energy, because first of all it was the low cost of electricity which attracted these large mining farms to that area.

I really don't it surprising at all that Inner Mongolia has decided to follow the stance of the national government which is to ban Bitcoin. China has been pushing its own Digital Yuan for some time now and what I said and think before during these events happened, will not change now. This is simply a move for the Communist regime to outlaw Bitcoin and spread the use of its own digital currency the Digital Yuan. China is for centralization of everything happening inside its borders, so Bitcoin is no exclusion from that centralization.

Eh, a lot of people think Inner Mongolia is a part of the country Mongolia,  just like  Austria is a province of Australia  


Short-sighted approach, mines moving to other countries doesn't mean decentralization.
It simply means there is one less country in which you can mine, rinse and repeat this 10 times and you will end with all the hashrate in just one country.


There are only 3 provinces that are actually of interest to miners, Inner Mongolia, Sichuan, and Xinjiang.
Sichuan relies on hydro and usually is visited just in the rainy season by relocating miners, they are not affected by the carbon taxes, this leaves only two, so it's more 1 out of two than one out of all 23 provinces. Anyhow, expect Xinjiang to replicate the move pretty fast as they know everyone from Inner Mongolia will first try to move there before moving abroad.

It does make sense from their point of view considering that none of the other provinces have announced similar cryptomining bans.

I read the proposal on another website and they are also banning cryptomining programs that run inside internet cafes (presumably they are mining Monero), but this is overkill because a dozen or so PCs' power draw is very small compared to a datacenter full of ASICs.

LOL.. highly influenced? Inner Mongolia is a province of China and the Chinese laws are applicable there. And the current crackdown has nothing to do with any anti-cryptocurrency policy change. The justification given by Inner Mongolia government is that they are asking all the high energy consuming industries to shut down, in order to reduce the electricity usage. Many of the cities there are facing high levels of atmospheric pollution, and the government wants to reduce the amount of electricity that is being generated from coal-fired powerplants.

Doesn't matter if they forced miners off-shore, for sure bitcoin mining farms have already their plan B and will set in motion once China or Mongolia ban bitcoin mining in their country. And as far as I can remember, there are farms being build around the globe so bitcoin will continue to flourish despite this negative news on bitcoin mining.