Chinese Bitcoin Miners Need To Move To Other Countries After New Regulations


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After China’s recent decision against cryptocurrencies, the industries top miners are now looking to move elsewhere to keep their operations running. Bitmain, Chinese largest bitcoin mining collective, is expected to open more operations in the US and Canada. Many other mining co-operation are also looking to the US, Canada as well as Europe to conduct their mining operations.

Founder of BTC said in an interview, “We chose Canada because of the relatively cheap cost, and the stability of the country and policies.” He also said that he is considering locations in Iran and Russia. The shifting and movement of mining may not affect the speed of transactions much. But the current mining landscape will be reconfigured. Miners were attracted to China because the country’s electricity and labor are very cheap. But now after the rules have been changed, they need to move out of the country to keep their operations running.

This move of China towards the Bitcoins and other cryptocurrencies, after accepting it in earlier times is a very major shift. A senior market analyst at online trading firm Oanda in London said in an interview, “This may have contributed to bitcoin coming off its daily highs. Electricity usage certainly appears to be a significant challenge for the cryptocurrency in the years ahead.”

On the other hand, China’s popular bitcoin entrepreneur and the man behind the country’s longest-running trading operations still has a hope. Bobby Lee, the CEO, and founder of BTCC, a company that closed down in September of 2017 recently gave an interview.

In the interview, Lee said, “In this world, nothing is ever permanent. One day I think it’s possible they’ll lift the ban, so called, and they might reinstitute it and license it.” Lee’s hope is showing while the neighboring Asian countries are putting on their own kind of the ban. For example, many bitcoin mining companies are waiting for South Korea’s official word to ban the accounts in cryptocurrency transactions.

Lee also said that the difficulty in surrounding mining new bitcoins can also raise the price of cryptocurrencies across the board. He said, “Today we’re at only 1,800 of newly mined bitcoin of every day. That used to be 7,200 as recently as five years ago. So in just a few short, maybe two and a half more years, we’ll see the supply go down again to only 900 bitcoins a day. So if you talk about multi-million dollars of inflow with the only new supply of 900 bitcoins a day, you can imagine where prices could be at in three, five, or 10 years.”

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