China will mine bitcoin in a new way

By 01/07/2021News
morning-news

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It’s time to have a little discussion about the fate of bitcoin and the crypto-world. After all, lately it feels like cryptocurrencies are having some problems. Bitcoin just recently tried to break down the $30000 level, prompting some analysts to predict another crypto-winter.


BTCUSD

BTCUSD

What the markets are witnessing right now. It is clear to everyone that inflation is bound to rise. Dollars are pouring into the system every month, the printing press is running non-stop. Bitcoin has long been a very interesting asset, even for parties with large capital. It has limited issuance and is increasingly being used as an instrument, on a par with gold.
There is some tension right now due to lower hash rates and the banning of miners from China, but that action is probably only good for bitcoin. These miners will move their equipment somewhere and continue to do their business anyway. And the rest of the crypto market will only be happy to see the computing power dispersed across Asia.
Many expect other countries to follow El Salvador’s example and start integrating bitcoin into their economies. In this way, these countries can create crypto offshore facilities through which substantial sums of money can be funneled.
There is also a second option with mining in China. Already now, miners are beginning to find ways to circumvent government bans on mining. After all, the ban only applies to connecting to public power grids. Simply mining on private networks or using green technology is not banned. Having done the math, an interesting picture emerges. A 3kW portable hydropower plant to which a single Bitmain S17 asic can be connected will already pay for itself in 2 months. The Yangtze River already has about 25,000 private hydropower plants in operation. Bitcoin mining business is getting better.
It’s only a matter of time before the hashrate rebuilds. It won’t be long before it starts rising again as miners adjust to the new conditions. As history tells us, a rise in hashrate is always accompanied by a rise in price in the future. So it is worth wondering where bitcoin will go in the autumn.

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