“Top” Bitcoin Miner Predicts Bleak Crypto Future In China
The founder of Bitcoin mining pool BTC.TOP, Jiang Zhuoer, has made another prediction on the future of this sector in China. Large BTC mining operations have been forced out of the country, as the Asian Giant crackdowns on the industry.
Back in June, Zhuoer dismissed the new measures imposed on China as “not as serious”. The country was known for “banning” Bitcoin, cryptocurrencies, and anything related every so often. This time was different, the crackdown is real and could have further implications.
Zhuoer believes that the crypto industry in China is heading to a complete ban where no crypto entity will be allowed to have operations or legal offices. The country continues to punish companies with ties to cryptocurrencies.
In Beijing, China’s central bank and the local regulator issue an order to an undisclosed company to cancel its business registration, Bloomberg reported. The crackdown has targeted exchanges, miners, national banks, and other entities.
The Asian Giant could be trying to fulfill environmental requirements, but many experts have put this justification into question. The majority agrees that China is targeting potential capital exits, sources of corruption, and even Bitcoin itself for its potential to be a threat to their CBDC project.
Antoni Trenchev, co-founder of crypto lender Nexo in London told Bloomberg the following:
Whilst not directly affecting crypto, China clampdown on tech firms is another example of it flexing its regulatory muscles against an industry whose oversight has been lacking. Bitcoin too is caught in China’s regulatory crossfire as it’s seen as a threat to the digital yuan.
Jiang Zhuoer predicts that in the future, all cryptocurrency businesses will not be allowed to have legal offices and companies in China. https://t.co/MtaeMtWdjd— Wu Blockchain (@WuBlockchain) July 6, 2021
Bitcoin Mining Titans Will Move To The U.S.?
In the meantime, BTC miners could be majority moving to the West. Ironically, the U.S. could be the next major center of operation for this sector. The North American country has had a controversial stance towards the crypto industry, but unlike China, the U.S. government model has allowed for some states to become ideal places to host BTC miners.
Zhuoer and “several Bitcoin miners” could ship their equipment to Texas, South Dakota, Tennessee, or the city of Miami. Compared to China, operating in the U.S. could be more costly, almost 6 times more expensive, and miners could face resistance from the local population.
However, the U.S. could be the less risky option. Zhuoer has considered moving to the Middle East, Russia, or other places, but authorities in these regions offer fewer guarantees. Some Bitcoin miners have already seen their pieces of equipment being taken by corrupt police and law enforcement institutions.
At the time of writing, BTC trades at $33,874 and has experience volatility during the past day with sideways movement around its current level. In parallel, the first cryptocurrency by market cap has been outperformed by Ethereum (+4.4%), and DeFi tokens, such as UNI (+15.9%), SUSHI (+22.4%), and AAVE (+18.5%).Source