China’s crackdown on Bitcoin (BTC) mining continues to face determined responses across the crypto ecosystem. One of the first BTC exchange operators and co-founder of Zap Protocol, Nick Spanos, said that the crackdown only proves Bitcoin is an unstoppable machine “if the world’s second-biggest economy can’t crush, devalue and manipulate Bitcoin.”
Noting that the crackdown is increasing scarcity due to there being fewer miners relative to the transaction volume, Spanos underscored the increase in miners’ profits while the mining difficulty continues to decrease. He explained:
“Bitcoin’s algorithm adjusts roughly every two weeks to allow one block of transactions to be mined every 10 minutes. So, it’s become both easier and more profitable to mine Bitcoin. That’s a recipe for enticing more miners back in.”
Spanos said miners moving out of China will seek to find a place with immediate neighbors, such as Kazakhstan, Iran and Russia. “Others in the region would also be well-served to seize this opportunity,” he added. Recently, one of the major mining groups operating in China announced its plans to move out of the country and distribute its mining operations among the United Arab Emirates, Canada, the United States, Kazakhstan and Iceland.
Spanos noted that Bitcoin’s price has always gone up once regulatory setbacks are “digested by the community.”
Last week, Galaxy Digital CEO Mike Novogratz saw “a big net positive” for Bitcoin in China’s crackdown attempt. He said that the market crash from an all-time high followed by high volatility was a successful test for the crypto ecosystem as a whole.
Sourced from cointelegraph.com.
Written by Erhan Kahraman on 2021-07-06 10:06:33.