LEAKED: Bitcoin Mining Faces the Chopping Block in New Chinese Regulation – CCP: "Orderly Exit"
Leaked documents related to the state of Bitcoin mining in China have arisen, and it will be grim for the future outlook of the business.
At this time, China accounts for 2/3 of the mining power supplied to Bitcoin. However, the intention to phase out mining farms is being discussed in Beijing, with enforcement at the local level being proposed.
China's top internet-finance regulator, the Leading Group of Internet Financial Risks Remediation, issued the notice stating a desire for local level governments to “guide” bitcoin-mining operations to make an “orderly exit” from Bitcoin mining operations in China.
Here's a post from @cryptovenus referencing the January 4th document in question:
This comes on the heels of news out of Bloomberg and Reuters that power being supplied to these operations would meet limitations; the limitations would be placed placed on them by authorities under new regulations at many levels.
The electricity to power these farms is supplied cheaply and has helping in part to give rise to the massive operations that exist in China as of now. An exit of so much processing power will surely have unexpected consequences to the Bitcoin blockchain and could destabilize the coin or the markets tied so strongly to its wellbeing.
Industry advocates don't believe the government can enfore such a ban due to many local governments receiving high tax revenue from operations in their jurisdiction. However, progress of the exit is being requested by January 10th, as well as the following 10th of each month.
Time will tell on this one. We must watch and see what's in store next for Bitcoin mining.
One thing is for certain, Bitcoin has seen many things happen and has continued on with not but a few stumbles that have pushed us to the high values Bitcoin now commands on exchanges across the world.
Bloomberg has confirmed the CCP's intentions to move the country away diverting cheap power to Bitcoin mining farms, however, the document has yet to be officially comfirmed, but several news publications have presented similiar reports on the document.
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If China is not advocating mining bitcoin, will bitcoin mining cease to be? I would think not. Certainly changes coming, as is life's way, constant shifts. Interesting read :)
what I have heard is that Chinese authorities ordered the closing of operations that create a large share of the world’s supply of bitcoin, tightening a clampdown that has already shuttered exchanges for the trading of cryptocurrencies in China.
Thanks! Something will happen, it always does.
Bitcoin will live on.
Hmm...could be that the cares are angling for bribes from the mining farms. Some nice payoffs to make the issue go away.
But it could be that the Chinese authorities have decided that the profits from mining are "too high" and they want some of the surplus to go into the government till. I suspect they'd be satisfied if the mining farms pay more for the power.
I have all my coins in /eth not /btc I hope that means the coins I have wont be effected. I would think it would take some time but there are many other places with cheap power that could having mining operations set up.
Doooood. Should I bail on btc or hang in there? I feel like this is bad for the cryptocurrency, but not necessarily bad for miners in the US. Difficulty is going to tank, and miners will flood in to fill the void.
That's not what I'm concerned about though. I'm concerned that the value of the coin will crash. What do you think?
It'll likely be too slow to notice. Like you said, other miners will step in as the Chinese exit over time.
I'll rephrase. In light of this news, would you:
@thebeachedwhale ^^
Cool, ... interesting news!
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Bitcoin will live forever, this is my prediction to it, nor China nor anything can stop its growth.
In any case, it may be the case that the Chinese experts have chosen that the benefits from mining are "too high" and they need a portion of the surplus to go into the legislature till. I think they'd be fulfilled if the digging ranches pay more for the power.
Or it would make BTC price skyrockets as the rate of producing new coins is increased to months instead of dates or weeks. Let China clamp their shit because they have more corruption/bribery looking to flow out of the country. The tech is still there, and at the end, they won't want to miss out on the innovation. When they have their political shit sorted out and want to come back in, we'll see even more competition for hoarding coins.
I can see short term downtrend but that is necessary for a real, organic growth instead of bubble hype. Having China owning >51% of BTC network is also not good for decentralization. If we can have spread out mining pools across multiple countries, we won't be affected by politics and whims of governments.
Actually i think you need to update this as it is not true (unless you are after sensationalism) - the Central Govt in China has told the regional areas (who like to pad their GDP numbers to look more successful) to properly regulate BTC miners in their provinces instead of giving them deals for free/cheap power - it is not an overall crackdown on mining - nor will it affect any of the large miners - it is all the small ones who popup in a region.