Re: China to restrain mining

Quote

Chinas central bank told a top-level government internet finance group that the monetary authority can tell local governments to regulate the power usage of bitcoin miners to gradually reduce the scale of their production, a source said.

Rather good news. "Gradually" is the key word, they don't intend to force miners to shut down immediately, just to cap their power usage over time.

That would be a shift in mining power, China will be gradually losing its % of hashpower, which is probably a good thing.

I completely don't understand the decision of Chinese government, by having majority of BTC hashpower on their territory - they have some sort of control over BTC (they could take over and attack BTC if it ever become a threat to them). Are they really that concerned that power consumption can get out of hand and cause shortage?

I am sure that China has a different thing in mind when it decided to also limit and soon kick out Bitcoin mining from its official jurisdiction. Anyway, this is a big good news to all of us in the Bitcoin community. China will not anymore have that power to control Bitcoin and we will not be under its threats and FUD. This can also lead to the "deconcentration" of the mining power away from China which can be good in the long term. It is about time that the whole cryptocurrency market will forget about China though am sure that many of their citizens are still into this market. We can all survive and prosper without the big China market.

as today Japanese activity in the field of crypto-currencies began to develop, I am convinced that it is the Japanese that can replace the Chinese in this market. To date, in Japan, the crypto currency has been practically legalized and any actions will be legal, unlike China.

As of now, Japan is the new leader, it has filled the void when China left, no questions about it. And now they are also trying to enter the bitcoin mining by developing its own bitcoin mining hardware (GMO). And as what other posters have pointed out, it China decided to ban bitcoin mining, there will be short term effect, but for long term we can withstand it. It's really better for us to really removed Chinese from the bitcoin equation, yes, they have been very supportive of it but their government chooses to turns it back against it. Let's see how Jihan Wu would really react if China orders a full ban of all crypto related activities. I'm sure he has made tons of money and he can probably shift his operations if he still wants to go to the mining business. As for me, the earlier they go out and exit, the better for us long term.