Chinese Crackdowns on Bitcoin Mining

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China has been cracking down on its domestic Bitcoin Mining Operations lately and that can be seen quite clearly when we look at the Bitcoin Hashrate Drop in the above picture. It also shows that governments are clearly now invested in this rapidly growing Digital Asset. The Chinese Government did propose a ban on Cryptocurrencies in May 2021 but we all know that Crypto is still moving around in China in fact it is one of the Biggest Countries to have People with Crypto.

One more aspect to consider is the Environmental effect of Bitcoin Mining that has been in talks globally. Even though I firmly believe that Banking Sector does a whole lot of damage to the Environment than just Mining Bitcoin, but a lot of people, and by people I mean Institutional Investors are worried about that while the Irony is that they were never worried about other things harming the Nature.

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China's latest crackdown news has obviously shaken the market a lot as we are definitely dipping right now in the Crypto Market but something that makes me a tad bit angry is the fact that a lot of people on Twitter is saying stuff like

It's the China FUD again

Yes, it is FUD I agree but you also have to look at the point that it's obviously working as the market is on a downward trend. China has always been quite good with the timing of their FUD news as it is quite obvious that Bad news has worse effects while the Market is Bleeding while Worse news will hardly have any effect when the Market is on the Uptrend.

Due to the crackdown now a lot of Miners have disconnected from the Bitcoin network and are now either waiting for the Audit or just leaving the country altogether to search for a new Safe Haven and for those of you guys that are still wondering if Bitcoin Mining is going to be gone I hate to say it but it won't as these same Miners will now look for renewable sources of Energy as well as low-cost energy so that they can make a better profit. Not to mention there will always be some Country that will want to take benefits of all of this even if half the world stands against it.

So yeah we can obviously look at this as an opportunity to diversify all the Miners as well as go for Green energy Sources. I really am looking forward to the time the Bitcoin Mining Hashrate starts to climb back up as I am quite sure it will.

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