Saylor believes China’s crackdown might actually have potential to ignite a Bullish market.
The Chinese Bitcoin Mining Crackdown
Just a few days ago, news broke that China would be cracking down on crypto mining, raising regulatory concerns for crypto investors. Liu He, who is one of the Chinese Vice Premiers, he published a post on the Chinese government website saying:
“China should be more alert and look for potential risks…. China should crack down on bitcoin mining and trading activities and prevent individual risks from being passed to the whole society.”
This conclusion was met during a meeting he and other Chinese officials held for the Financial Stability and Development Committee of the State Council on Friday. The message read as a warning to crypto institutions working in China and as an intensifying effort to “crackdown” on Bitcoin mining. At the time of writing this article, over the last 24 hours Bitcoin has fallen down 9.9% and Ethereum is down 16%, according to CoinGecko.
An End to Bitcoin Mining in China Could Be a Good Thing
Although many crypto investors have understood the news from China to be a red flag for the crypto world, other crypto analysts believe that this may actually be good for Bitcoin and the growth of crypto currency as a whole. According to a study done by Statista, 65% of the world’s Bitcoin mining is done in China, with other studies estimating the number to be actually much greater, around the 75-80% mark.
Why is this good? The argument is that if China bans Bitcoin mining, it would allow the Bitcoin miners in the United States to capture a much greater market share. This is important because the United States Bitcoin miners are known to use a much cleaner operation then the Bitcoin miners in China. With Bitcoin miners only using clean operations, the carbon footprint produced by current day Bitcoin mining would dramatically reduce.
MicroStrategy’s Michael Saylor believes China’s crackdown might actually have potential to ignite a Bullish market.
The Most Bullish Cycle
Although crypto critics are relishing the correction in the market, many like Saylor believe a bull market is imminent. Saylor believes China banning crypto mining would be a good thing, and that it would alleviate concerns regarding the negative environmental effects of Bitcoin mining.
It may seem hard to believe a bull market could be close by in times of extreme volatility, but a tweet via Binance CEO Chanpeng Zhao shows Bitcoin’s fabled history with massive price corrections.
Following the image by CoinMarketCap, one can see Bitcoin’s price correction as well as the continued growth following said price corrections.
It should be a very interesting next couple of weeks in the crypto landscape…
Source : bsc.news
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