China intends to abandon mining cryptocurrency by 2021.How do You think this news will affect the entire industry and what alternative countries can replace this niche?
This will not affect the industry on a large scale IMO if only the actual mining aspect is banned while the production of newer ASIC chips isn't. For once, the cluster of mining power on China will be dispersed into other countries and the network will finally have a chance to decentralize the network. Russia, Iceland, and perhaps the US itself can pretty much harbor large-scale industrial mining. China is only being chosen as the hotspot given the ample climate conditions and cheap hydropower. Iceland has it, the US has it and Russia has it as well.
Apparently, the production of new chips will also be buried.Because based on the legislation of China, this is an adjacent industry with cryptocurrencies.It is difficult to imagine where mining farms will put their worn-out equipment and what will be the fate of the BITMAIN plant.I still do not understand why China decided to take such a step...After all, in general, they also made very good profits.