Chinese regulators and watchdogs issued two scary warnings in one week. The Bitcoin (BTC) price plummeted to $30,000, unseen since January. There is some evidence that Chinese Bitcoin (BTC) miners may take these alerts super seriously.
Paradise lost for miners?
Top-notch crypto expert Dovey Wan, founding partner of Primitive Ventures, is sure that the net hashrate of the Bitcoin (BTC) network will expand its dropdown further. It has already lost 30 percent since mid-May and is now estimated at 120 EH/s.
While the mid-April dropdown of the Bitcoin (BTC) hashrate was likely attributed to the coal mine explosion in Inner Mongolia province, the ongoing plunge may indicate that miners may start abandoning China.
Mrs. Wan admitted that many Chinese miners are preparing to move overseas. For them, the ongoing crackdown on Bitcoin (BTC) mining was foreseen since 2018. So, they are going to relocate mining facilities outside of China.
She claims that rigs will mostly be transferred to Pakistan, Kazakhstan and "other adjacent under-developed countries" that are traditionally friendly to Chinese entrepreneurs.
Also, some Chinese miners are lured by low-cost electricity in Africa and are exploring opportunities to mine Bitcoins (BTC) there, Mrs. Wan added.
Bitcoin Mining 2.0
Meanwhile, such a migration may advance the position of the flagship cryptocurrency. Seasoned Bitcoin (BTC) researcher Vijay Boyapati opines that Bitcoin (BTC) will benefit from its ban in China.
Should the Chinese government restrict mining activities, Bitcoin (BTC) entrepreneurs would have to seek opportunities to continue mining in less authoritarian countries.
As a result, once the majority of miners move out of China, the traditional "China FUD" will finally be dismissed.
At the same time, prominent cypherpunk and CEO of Blockstream Bitcoin (BTC) development studio Adam Back is certain that China never "really" banned Bitcoin (BTC). Thus, all of these scary alerts are nothing but "lost in translation" issues.
As covered by U.Today previously, yesterday's anti-Bitcoin (BTC) announcement resulted in a double-digit plunge of the king coin's price. Earlier this week, Bitcoin (BTC) touched $30,000 suppressed by China FUD.
However, moving Chinese Bitcoin (BTC) capacities overseas will be a cumbersome and challenging process for mining giants. As a result, mining pools that have already established businesses outside of China might benefit the most from this "exodus."