It's been nearly a year coming on the China mining ban and bitcoins great fall to $29k, many of us have forgotten about it and moved on as the miners moved to different countries and the hash rate returned to an all-time high along with the price. Bitcoin has seen a steady decline of late due to geopolitical issues, which are normally temporary, as hash rate would continue to climb.
However, in recent months, we've seen the hash rate decline and we will have the first big downward adjustment in the mining difficulty for 2022. So where is all this hash rate going, how come is going offline?
When bitcoin costs around $15 000 to mine, you're still kicking off a healthy profit in this 39 - 42k range. Anyone giving up now, must not be of their choice.
So where, what, who and how is hash rate taken offline? For an answer to that, we may have to return back to the east.
Image source: - blockchain.com
China finding hidden mining operations
Now China has been showing zero hash rate since the mining ban, but you have to be a damn fool to think that all the mining operations in China have left, no they've just moved underground or gone mobile.
One of the ways they've been able to hide is through disguising themselves as Electric Vehicle filling stations.
Reports out of China claim that local authorities have seized 1,106 mining rigs from two cities in China’s southeastern province of Guangdong.
Using EV charging points as a cover was genius, they are large consumers of electricity and allowed the miners to remain in operation for over 1,000 hours while staying hidden from authorities.
However, authorities are monitoring any electric consumption carefully, as local bills start to rise due to lack of energy supply and broken infrastructure.
The crackdown continues, as miners are confiscated in a bid to reduce the energy consumption in China, which has been a problem of late. Coupled with the fact that Bitcoin provides competition for their digital RMB, the CCP isn't going to look at bitcoin favorably anytime soon.
Bitcoin still a big part of China
China still takes up a big part of the bitcoin network accounting for 10% of global Bitcoin transactions, if you think bans and authoritarian rule are going to stop Bitcoin you're mistaken. You can see that it is able to thrive under some of the harshed conditions.
That's why bitcoin will win, and has won, it doesn't care. When you consider altcoins who have to make cosy with governments, do you really think with the way the world is fragmenting, anyone wants anything to do with American tech companies with coins?
I don't think so, they're just another layer that can get court up with sanctions and bitcoin bypasses all that bullshit.
Sources:
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