Jiang Zhuoer, who acts as the operator of major Chinese mining pool Lebit Mining, believes that the recent news coming from China regarding crypto would probably make miners move with their activity to the US and Europe.
“The worst case may be that large-scale mines are closed, and China’s Bitcoin mining [will return] back to the state of 2014-2015. Small miners put a few at home. Middle miners find a house to put dozens of machines for mining, large miners find a remote, small hydropower station,” declared Jiang.
He also pointed out that, in the past, local miners saw building mining farms overseas as being too expensive (with costs ten times higher than in China) but after the statement made by the Chinese government this week, they’ve started changing their minds.
Among the decisions by the Chinese government, that will not only affect bitcoin miners but have also pushed the price of the cryptocurrency down, is a ban on financial institutions and online payments channels that involve crypto, as asked by the Central Bank of China. Furthermore, the government also cracked down on bitcoin mining.
“Mining in China may change from large to family miners, even if it causes 50% of the mining machines to fail to operate, there is no problem for the Bitcoin system. But the top mining pools may become European and American mining pools,” concluded Jiang.
Meanwhile, Michael Saylor, the CEO of MicroStrategy, commented that “a crackdown on miners in China would radically reduce the carbon footprint of Bitcoin mining, increase the profitability of all the remaining Bitcoin miners, reduce nagging China FUD, support progress toward our ESG goals, & drive up the value of BTC. We should be so lucky…”