“Extremely Bullish”: China’s Crypto Ban Could Be a Boon for Bitcoin’s Security
Great American Mining co-founder Marty Bent has opined that Chinese mining giant Bitmain moving its manufacturing operations from China to other countries would be “extremely bullish” for the largest cryptocurrency.Bent believes that it would be a significant “de-risking moment” for the largest cryptocurrency.
This is extremely bullish. Shifting the manufacturing of ASICs which are critical to Bitcoin's security away from China is a huge de-risking moment for the network. https://t.co/lmazMS9jsO— Marty Bent (@MartyBent) September 27, 2021
Kevin Zhang, vice president of business development at Foundry Service, has tweeted that he expects the lion’s share of Bitmain’s business production to move to Malaysia and Indonesia amid China’s ramped-up clampdown on the cryptocurrency mining sector.He believes that this shift would have some “serious implications” that pertain to logistics costs and the manufacturing process:
Losing loyal domestic buyers/resellers that will have to reincorporate abroad, increased logistics costs, potential quality issues, more friction with Chinese management, and outsourced manufacturing.
As reported by U.Today, retiring U.S. Senator Pat Toomey and Senate hopeful Blake Masters recently urged the government to counter China’s hostility toward Bitcoin by embracing the benchmark cryptocurrency.The U.S. has already emerged as a hub for cryptocurrency mining, with states like Florida, Texas, and Wyoming actively supporting the cryptocurrency industry.
Another buying opportunity?
While the news about the harshest China cryptocurrency crackdown initially crashed the market, Bitcoin managed to recover over the weekend.Fundstrat’s Will McEvoy has determined that the past Bitcoin bans presented great buying opportunities for investors.
China #Bitcoin "bans" have been great buying [email protected] @fs_insight pic.twitter.com/wGvr6FDFv0— Will McEvoy (@will__mcevoy) September 24, 2021
Those who bought the largest cryptocurrency the day China initially banned financial institutions from making Bitcoin transactions would be up 4,266% by today.Source