The latest tumultuous period has often been dominated by China and the ever-increasing measures against crypto in the country. The mining of bitcoin (BTC) and other cryptocurrencies was restricted and it became increasingly difficult for investors to trade in cryptocurrencies.
These draconian measures initially had major consequences for the price of, among other things, bitcoin and the sentiment in the market. However, more and more sounds are coming out that these developments in China will have a positive effect on the world of cryptocurrencies in the long term.
Bitcoin is indestructible
Nick Spanos, founder of the Bitcoin Center and co-founder of the Zap protocol, has a strong opinion.
He believes recent developments in China have made it clear once again that bitcoin will not just go under.
“If even the second largest economy in the world can’t crush, devalue and manipulate bitcoin then it’s an unstoppable machine”
Spanos also mentions the situation of large numbers of miners in China and elsewhere. In the short term, the measures taken by the Chinese government created uncertainty and chaos. As time goes on, calm will return to the market and also to the miners. Spanos also mentions the profit that miners are currently making
Because the difficulty of bitcoin mining has now been scaled down, it is easier for remaining miners to mine bitcoin and therefore more profitable. According to Spanos, this is attractive for any new miners who can fill the gap in this way.
In addition, many large mining pools and companies have left China and have established themselves in other countries such as Kazakhstan and the United States.
Rest return to the market
Now that the greatest turmoil seems to be over with regard to China, we have to wait for calm to return to the market.
According to Spanos, this is only a matter of time. He argues that every time negative news came out, bitcoin’s price moved up again once the relevant news was “digested” by the crypto community.
Spanos is not alone in taking such a position. Also Mike Novogratz, CEO of Galaxy Digital, recently stated that he saw the crackdown by the Chinese government as a positive thing. It was a test for bitcoin and crypto in general.
It has since been shown that bitcoin has passed this test with flying colors. The mining sector hardest hit by the measures is climbing back up and the largest cryptocurrency will continue as if nothing happened, it seems. If even China can’t get bitcoin down, who can?