China’s banhammer keeps on hammering. With China excluding itself more from economic freedom and technological progress by banning services such as CoinGecko and CoinMarketCap, I believe that many great and profitable risk-reward moments will be created in the crypto space.
In the latest wave of bans and crackdowns in China, Alibaba has stated that they will ban the selling of crypto mining equipment.
It’s of course not a surprise and almost not even newsworthy at this point, it’s just another casualty in the moronic Chinese war on crypto. But silence can be interpreted as consent, so speaking up is important.
What saddens me the most is the decrease in accessibility to mining equipment for some people that this can lead to.
That the Chinese government bans the access to such “future tech” as crypto mining equipment is truly doing the Chinese citizens a massive disfavor, and stalling their own economical progress in the longer term.
Hoping some reason will find the decision makers in China, though the outlook seems bleak.
Let’s take a quick look on the other times that China has been cracking down on crypto:
- 2013 December: Financial institutions are banned from making, facilitating, or handling Bitcoin transactions.
- 2014 April: Commercial banks and payment processing companies are mandated to shut down existing Bitcoin trading accounts.
- 2017 February: Cryptocurrency exchanges are required to comply in full with anti-money laundering regulations.
- 2017 September: Chinese domestic crypto-exchanges are hit by the banhammer. Almost 200 trading platforms shut their doors or move overseas to other countries. Crypto ICOs are banned in China.
- 2019 April: A partial ban on the crypto-mining industry is established.
- 2021 May: Several Chinese provinces individually start banning cryptocurrency mining as an industry and starts banning mining equipment. Financial institutions are now banned from dealing with cryptocurrencies, not only Bitcoin.
- 2021 June: A complete country-spanning ban on cryptocurrency mining and mining equipment.
- And now, last month, the banhammer hits on cryptocurrency trading by individuals, even using foreign cryptocurrency exchanges.
In line with all other sad news coming out since this years Chinese crypto ban, the second-largest Ethereum mining pool SparkPool has suspending its operations.
SparkPool was second in size only to Ethermine and was controlling 22% of Ether’s hash rate. No new users are permitted to join, and existing operations has been shut down, both in China and abroad.
In the long term, I see this only making crypto stronger, no matter what the Chinese government does. This banning might create some short-term risks in the crypto market, but it also creates a lot of opportunities. I think that the rewards will heavily outweigh the risks.
The banhammer keeps on hammer, the dips keeps on being bought.
Disclaimer
This is not financial advice. Do your own research. You are responsible for your own personal decisions and your own personal economy.
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