Obviously there's a short term negative impact on price, but China FUD a side, could this be a blessing in disguise for Bitcoin and crypto space in general is my question.
The fact that the majority of Bitcoin was being mined in China was a potential threat to the cryptocurrency and crypto space in general.
China is a not a good place, it's people a side, it's government is shit and could be described as some sort of a communist totalitarian dictatorship. If the Chinese government wanted to let's say take control of bitcoin mining operations across the country they could. I'm not saying it's likely but the government doesn't fuck around and the people and business within the country seen to have very little rights.
Chinese mining pools account for more than 60% of the Bitcoin network’s total collective hash rate, that's fucking scary!
Between the cheap electricity rates and the fact most of the worlds mining equipment is assembled there gave them a massive advantage, to which they've absolutely been capitalizing on.
That cheap electricity, well nearly 60% of it comes from you guessed it, coal. That said from I can tell there's been a transition in place to move towards more cleaner burning coal in recent years.
I'm not saying European and western governments are perfect, they can be complete shits them selves but I feel much better knowing that there's going to be a massive shift of hashpower to more democratically stable countries.
Norway, now's your chance!
The mining landscape is going to look a lot different soon enough, with major Chinese mining companies looking to halt sales of equipment in mainland China and ship equipment to other more mining friendly countries.
If cheap electricity is what the network needs then I would have to think that European countries like Germany, Denmark, and Belgium are going to be considered prime locations for future BTC mining operations.
Household electricity prices worldwide by country.
Turns out that Germany is also ranked among the top countries in the world by installed renewable energy production.
USA, Canada, and and Japan also top this list, all first worls countries with stable democratic government.
Leading countries in installed renewable energy capacity.
I can't say for sure how this is going to play out but personally I feel a bit better about the future of the Bitcoin network and it's mining capacity knowing that won't be dominated by China for much longer.
What impact do you think China's exit from BTC mining will have on the network and the crypto space in general?
Ciao for now,
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