Topic: Why China banning bitcoin mining isn't a bad thing - look at the bright side (Read 185 times)

For me I think that the most positive thing that we can get from china banning bitcoin is the fact that it was able to have some valuable news as it soread like wildfire and people became curious and interested and really wanted o know on how bitcoin is.

You had stated all of the possible reasons. But, it may take time for these miners to redevelop their mining rigs in other locations since many countries requires atleast a business permit for them to do so. On the other hand, if they luckily find a certain mining company, they can easily be a part of it.

I agree with you.
for OP
basically china's decision to ban bitcoin, has been based on their internal bosses. so I guess, there will always be a loss and profit effect. but anyway, I do not care that china will be back, or forbid it forever. currently bitcoin has no effect on the existence of china.

If this news is, in fact, valid, then this is the first step in returning Bitcoin to a truer decentralized currency. I'm curious to see the responses of some of our Legendary members respond to this news. But for me, I believe that the price of Bitcoin will spike. There could be some concern about transactions taking longer to confirm, but 7-10 transactions per second seems pretty capped to me at the moment anyways.

Russia will undoubtedly step in with mining companies now, but I'm really curious to see how this will affect the longevity of Bitcoin.

I do agree with @richardsNY about being excited about being free from the tyranny of Chinese miners. I wonder if mining pools will become more prevalent with the drop of Chinese miners...

It would be a great thing indeed, actually! They have cheaper electricity than anybody else which is not fair. Moreover, Bitcoin mining should be decentralized and right now it is getting more and more centralized in China.

If they ever actually end up banning the mining aspect, we for once will be completely free from the tyrant called China. Bitcoin exploded after China forced their exchanges to suspend their activities, and in this case it will be similar. I strongly hope that Scandinavia will be the new mining capital in the crypto world. Great cold climate is a plus, their very low electricity rates is a plus, and the overall friendly nature of the authorities is a plus. Another great use of the heat that these farms are producing, is that it can be used in various ways to generate electricity, and to warm buildings in the winter. Sure, a temporary cut in hash power won't be something to look forward to due to its negative side effects, but without pain, there is no gain.

I am always curious about the government's reason for banning bitcoin, when it is clear that the bitcoin is self-generated and mined on its own like gold or diamond, but as a weak individual I can not do anything to the government, I can only hope that bitcoin will remain success and the bitcoiners stay prosperous.

It's definitely a good thing. Concentration of mining power behind the Great Firewall has been a big concern for years, especially in the context of data propagation lag. China has had a majority of mining power for years, and it's much healthier if that hash rate is spread around the world. That way, no single government can drastically affect the mining ecosystem with official actions.

The primary concern is how smooth the transition is. I'd rather not see massive drops in hash rate if/when the hammer officially comes down. Fortunately, it seems like the larger Chinese miners have already been planning for this. Bitmain has been expanding their base overseas for years now.

And tell me, if there wouldn't be any of those companies who are providing them cheap electricity, or if the government decides to subsidiate them forever, it could be a chaos.


But only on the economic side, China's pools without electricity are nothing, they can not mine with $0,20$/Kw
It would maximize their expected expenses a lot.

I dont know, but there is a lot of manipulation in there, and it needs to be finished.

it is not a bad thing if you are a crypto lover, lmao.

Opening opportunities for other countries where you can get cheap electricity too, like Russia etc.

Yeah but so aren't big data servers, or the data servers for the olympic games for example are a fucking catastrophe compared to Bitcoin being a little dot on the energy consumption chart. Bitcoin uses a lot of electricity but relatively it doesn't at all.

Though moving away from China and into another country doesn't really change the fact that the miner's opinion is the same. If they still continue to mine Bitcoins they would likely still have the same mindset, so in cases of forks you would still have the same people having the same decision in forks. I don't think it would change anything. You just moved them to other places.

I've read somewhere that the news is fake, but who knows...
If the same miner groups moves out from China and settles in a different county, that won't make the market more decentralized... only delocalized, in the meaning of physical location, but nothing else...
The Chinese miners were offered to go to the northern Russia, where the climate is really cold in summer too, not only in winter, electricity is cheap and they have some dodgy old nuclear plants they can switch on again if needed... I know that the miners won't move to Russia but somewhere like northern Canada or similar places, but as long as they belong to the same pool it doesn't mean that the influence of the Chinese miners will fall.

China works for an enviromental change with electirical power. All bus and taxies will electrical step by step. Maybe thats a one point of this ban.
Mining isnt enviromental processing for humanity

I agree. Reducing Chinese influence will indeed make the market more decentralised than it right now is because China is a big country.

https://news.vice.com/en_us/article/59w5eb/china-is-about-to-kill-nearly-all-bitcoin-mining-operations-in-the-world?utm_source=vicenewsfb

China is banning bitcoin mining. And this isn't even necessarily a bad thing. Why you ask? Let's summarize some bulletpoints:

-A lot of hashing power is coming from China which isn't the most friendly towards cryptocurrecies (gov is fine with blockchain though)

A lot of these big mining facilities have racked up quite an income over these years, they could simply move out of China to resume their operations elsewhere.

Preferrably they'd scatter around a bit in low electricity cost countries to further ''decentralize'' the mining operations, how is it decentralised if the majority of hashing power is still coming from a few big groups? Well atleast they'd be in different countries, since it takes a while for governments to react it means that a similar situation like China now isn't bound to occur very quickly.

- Hasing power drops, bitcoin transactions become slower which forces BTC to take measures such as increasing block size to prevent BTC from dieing.

These are some points, likely the value of BTC will drop on a short term notice but I wouldn't really worry. Rich Chinese come to western countries for fresh air and generally try to get their money out of China. If these miners find it that profitable to mine BTC and want to continue doing so then nothing really stops them from just leaving the country, I can imagine there are quite a few countries who would welcome these miners as they bring a lot of money with them and will boost their economy.

Anyone can think of more reasons why this isn't necessarily bad?