Trading prices for almost all popular cryptocurrencies, including Bitcoin and Ethereum, have been impacted by the Chinese crackdown on cryptocurrency mining. It was feared that the Chinese crackdown on cryptocurrency mining in China would have a long-term negative impact on these coins.
To date, however, popular coins are not losing value, but rather increasing. However, this stability cannot be considered a guarantee. In cryptocurrency prices, volatility and large dips are the norm.
What if China or other countries crack down on cryptocurrency mining?
What if China bans cryptocurrency mining altogether? Experts believe that even the most severe Chinese crackdowns on cryptocurrency mining could have a positive effect on Bitcoin in the long run. There could be implications for cryptocurrency trading in the future.
Professor Tushar Jaruhar of the Jagdish Sheth School of Management (JAGSOM), says the Chinese government recently launched eYuan and gave it to 500.000 people. They don't want Bitcoin to question their authority or control.
Professor Jaruhar says this will not stop people from mining Bitcoin in other countries because there is a large number of people who believe in this cryptocurrency and want to buy Bitcoins.
“Cryptocurrency investors know how China operates and most investors would have expected the uncertainty caused by Chinese policies. There will be some impact as finance and risk are interlinked, but it is not expected to be substantial.
Professor Jaruhar explained to FE Online that there is concern about the energy consumption of Bitcoin mining, but it is unclear whether this will make cryptocurrencies less attractive. "
Gaurav Dahake is the CEO of BitBns. He believes mining operations will become more decentralized and test the antifragile nature of Bitcoin if there are further crackdowns. The Bitcoin network cannot be controlled by any government, institution or organization.
The impact will have a short-term impact and investors need not worry about the decline. Most other crypto assets are proof-of-stake and don't prove they work. We see more sources of clean energy used for Bitcoin mining.
Proof of work is what powers the Bitcoin network. He said he didn't think it would make Bitcoin any less attractive to investors.
In hopes of capturing a portion of Bitcoin trading revenue, poorer countries will welcome mining on their land.
“In the short to medium term, Bitcoin's value will stabilize as the cryptocurrency community finds new mining locations and adapts to the newly mined cryptocurrency (likely lower than previous crackdown levels).
Bitcoin advocates believe in a libertarian worldview, where money is protected from prying eyes and central banks. Therefore, the temporary setback will not affect cryptocurrency loyalists. They will continue to believe in Bitcoin and other cryptocurrencies for philosophical reasons, ”Chebbi said.