Continuing from this post last week,what came next was a test at the $40k levels which didn’t hold, and dropped all the way back to $30k during the course of the week, at least now we have a better idea about what contributed to this drop. The China ban and relocation of miners.
And there we have it, most crypto people already know this but I'm not sure everyone saw this. This is actually a blessing in disguise, now those critics that claimed Bitcoin was not decentralized with respect to the concentration of miners in one place can now move on to something else, miners can now set up their mining operations in areas with renewable energy sources, helping to further decentralize the security of Bitcoin mining.
Plus it’s high time Bitcoin rids itself off the “China shackles”, shackles of quivering at any news popping out of China with the word “Bitcoin”, rid of threats from China and how they plan to ban this or that! rid of the shackles that when China sneezes, Bitcoin shakes, we don’t want that Bitcoin anymore, and we are going to pay dearly for it. Speaking of paying dearly....
This is what "Speaking of paying dearly” looks like, mass exodus of mining hardwares. Yeah, the recovery might take a while, because this migration will definitely come at a cost and it won’t be cheap. This also came with a significant drop in hash rate of Bitcoin mining and you can trust the media to milk every FUD out of this event to cause more people to panic sell.
All well and good, at some point Bitcoin will also have to shake out the effect of influencers like Elon Musk on its price action. Maybe in a few light years. Just imagine what the price of Bitcoin would have been if all these suppressing wasn’t happening! Dang! In other news, Paraguay seems to be the next country on the line to sign the Bitcoin law! See the list of countries planning to accept Bitcoin below and see why China has missed out on a large opportunity to be Bitcoin capital.
So is the bull run over? I say this price suppression won’t last forever and will end in a bountiful bust, soon.
China makes $30bn every year from mining revenue, with this ban, here are the countries that will be sharing that $30bn as miners move their operations out of China. Once again, oh China why have thou slept on this great technological shift!