Big Bitcoin Mining Migration, More Decentralized Market

3000 kg of mining machines are being cleared for shipment overseas

Big Bitcoin Mining Migration, More Decentralized Market

Yesterday the People’s Bank of China called major banks and Alipay to re-emphasize that banks are not allowed to participate in digital currency trading activities, followed by CCB, Agricultural Bank and Alipay, which also released a statement on their official websites.

Counting from 2018, I’m afraid this statement is the most severe statement so far, but the effect it can play is still much smaller compared to 94 in 2017, mainly because after the promulgation of 94 policy in 2017, major banks have already strictly controlled and banned digital currency trading, this time it is just re-emphasized, and there are no new initiatives.

But in fact, if we think about it calmly, I am afraid that it is unrealistic to really ban digital currency transactions completely, and it is also difficult to implement in specific methods. User A transferred a transaction to user B. If both A and B are acquaintances, and neither of them added a transfer attachment to the transaction, how would the payment institution, as an intermediary, know what the transaction was actually used for?

Therefore, I think the starting point of this state policy is still to maintain the current financial stability, to avoid the risk of digital currency transmission to the general public, and to act as a deterrent in terms of sound, especially to deter investors who are new to this field, hoping that they will exit. The impact on digital currency enthusiasts who have been active in this field for a long time is not significant.

I instead think that the state’s complete withdrawal of mining farms during this period, especially in Sichuan, with a tough approach to the withdrawal of mining farms is a real blow to our miners and to some extent to mining participants.

Earlier, after the regulator had just released a statement on the strict investigation of bitcoin mining, I wrote in my article that I was afraid that mining farms would gradually move overseas and that it would be more difficult for ordinary retail investors to participate in mining, but I didn’t expect things to develop so quickly.

The overseas media has been almost lopsided in its applause for our policy of retiring miners, with Kazakhstan and certain US states immediately welcoming it publicly. Many people have long been concerned about the deployment of Bitcoin’s main computing power in China, and now they’re just “scrapping their own work”. There were cheers from overseas.

According to Guangzhou Customs, 3,000 kilograms of mining machines are being cleared for shipment overseas, and a domestic mining giant released a statement yesterday that their mining machines in Kazakhstan will soon be deployed.

Once they leave, I’m afraid they will never come back here …..

Seeing these, I am rather sad inside. From 94 to now, our country originally had a considerable advantage in trading and mining in the field of digital currency. But from 94 to today, even the last advantage of mining has been completely knocked out.

And these measures have hardly had any negative impact on the development of the global digital currency industry, except for suppressing the development of domestic digital currencies.

Just take this round of DeFi development, from last June when Compound issued coins to now, a whole year has passed, almost none of the loud DeFi projects on Ether are made by Chinese teams, not only that, several top DeFi projects are also missing the participation of famous Chinese private equity funds.

This is especially true for NFT, which is on fire overseas, where no Chinese team is seen.

This can’t help but say it’s a very big regret.

Given the current development situation, the gap between our country and overseas in this area continues to widen, and the newly initiated seeds and hotly developed areas overseas are almost imperceptible in China due to poor information, information blocking, and language barriers.

Among the overseas voices, there are two that are often mentioned: one is “we have to develop what China prohibits”, and the other is to comment that these measures in our country “are the best decentralization”.

It’s a mixed bag of emotions to see this.

Posted by:CoinYuppie,Reprinted with attribution to:
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