Bitcoin (BTC) mining, China needs nothing more. And that’s a shame, says MicroStrategy CEO Michael Saylor. He even called China’s fierce performance a “trillion-dollar mistake” in a recent interview with Bloomberg.
As you have probably already read on Crypto Insiders, China is actively shutting down miners. Bitcoin mining is banned in many provinces, so many miners leave China. The result is a declining computing power on the network and also a falling bitcoin price due to panic in the market.
According to Saylor, the falling price is a direct result that miners are now dumping their bitcoins on the market. This is partly to be able to pay for the relocation to other countries. For example, Kazakhstan is a popular destination. However, such a move takes time.
Saylor argues that China is in the process of killing a fast-growing industry that brings the country billions of dollars in revenue. A “trillion-dollar mistake,” Saylor says:
“China had a 50% market share of Bitcoin and they were generating $10 billion a year in an industry that is growing 100% year over year. And then the government broke loose and pushed the entire industry out of China. I think given the growth rate of Bitcoin, this will turn out to be a trillion-dollar mistake for China.”
According to the CEO, it is now the miners in other parts of the world who are benefiting most from the situation. “their costs have remained the same, but they will generate 50 to 75% more turnover in the coming time.” Furthermore, Saylor calls it “a great opportunity for Western investors” given the low bitcoin price.
The company Saylor leads, MicroStrategy, is somewhat the figurehead of bitcoin adoption among major investors. The company currently owns 105,084 bitcoins worth $3.27 billion. This puts the company $1 billion in plus!