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Monday, October 3, 2022

China BITCOIN Crackdown Is FAKE!!

Unprecedented things are happening in the crypto space, specifically with the KING asset.BITCOIN! Charting and technicals show that the asset has found its bottom, and the signals for the next price movements are up. But what about those fundamentals? You cannot forget about those. We have to talk about BITCOINs most important fundamental to begin the episode, as things are not looking good on that front.

The Bitcoin hashrate. It is collapsing and it is collapsing fast. May 13th the hashrate peaked at over 171 exahashes of power. As of yesterday, it was just above 65. In just a month and a half hashing power has collapsed by over 61 percent. This is one of the most significant hashrate drops in the history of BTC.

Even outdoing the late 2018 collapse that happened over a longer time period, about 3 months! So what is the reason for this collapse!? CHINA is cracking down on Bitcoin mining just as their own digital currency, the digital yuan gets ready to launch. Industry analyst, Kevin Zhang of foundry services, who has connections to the Chinese miners spoke to some of them, and it’s not good news.

Reality is setting in and they estimate that more than 70% of the total mining capacity in China has gone offline over the past week, and that could increase to more than 90% in the coming weeks. Hurts donut? Yes, it stings in the short term, but in the mid to long term, this is a great thing. Chinas dominance over BTC has been fading for some time. The dominance of Bitcoin mining from China has drastically declined over the past few years.

China-based mining operations went from representing nearly 90% of the hash rate contribution in 2014 down to around 65% as of late June 2020 If 90 percent of China’s hashrate goes offline, that wouldn’t even put them as a top contender for Bitcoin geographical mining dominance. They would be dominated by the US, Russia, Khazkhakstan, and others. They are thrown right out of the BITCOIN conversation.

So the question we need to answer is this REAL? Or is this just a show?? China doing its duty to fulfill a narrative! That Bitcoin needs to go green Well, Chico thinks this is part of the show. This chart is a little bit old, but it shows the contrast in hasrate declines between the 2 most dominant and popular proof of work coins that are mined.

Bitcoin & Ethereum Bitcoin hashrate is down over 61 percent, while Ethereums hashrate is only down by about 20 percent from all-time highs. Yet, analysts from the East the trusted ones like Wolfie Zhao, who work for news outlets like the BLOCK, are saying this Ethereum hashrate drop is due to the china crackdown! Well does this make sense then?SOS Limited, a publicly-traded mining operation out of China, in May announced they were scaling up their mining operations, by adding 6039 mining rigs.

Both Ethereum and Bitcoin. scaling up before a big BAN announcement? Just bad timing?? Well SOS limited just announced a move to the US for their bitcoin mining operations, but in their PR article, they say this: In response to developments in the laws and regulations pertaining to blockchain operations in China, SOS has begun shifting its bitcoin mining operations to the U.S.

The majority of SOS China operations, namely, its insurance businesses, call centers, and Ethereum mining businesses, remain unaffected, and fully operational Bitcoin mining is affected but Ethereum mining isn’t?? Wait, that doesn’t make a lick of sense to me. Ethereum mining is also dominated by China the #1 pool Ethermine is European controlling nearly 25 percent, but spark pool, f2pool, beepool, nanopool, uupool, babel pool, and zhizhu.top are known Chinese pools just based on them, that is nearly 50 percent of the Ethereum hashrate.

China controls basically an equal amount of Ethereum mining as Bitcoin. Yet Ether isn’t collapsing like BTC.why the difference? This was a mining crackdown, a mining crackdown of digital currencies including Ethereum. And with Ethereum EIP 1559 and the switch to proof of stake coming very soon you would think Chinese Ethereum miners would be exiting faster than Bitcoin. But that’s not the case. China and its miners are still gung-ho on Ethereum like I said something does not make sense! My opinion that I have no basis for and just a little bit of speculative evidence? Just my feelings basically.

Chinese Miners are exiting China not because they are being exiled by the government, and it’s their choice to leave but they are being told to by the government, so China sets up shop internationally and has its power distributed throughout this world not just concentrated in China. They want to get their operations set up here in the US too and the little bit of evidence I have of this is from Kevin Zhang once again. July 19th, Zhang tweeted The hopium in Chengdu was real last night.

Can’t wait to see how all this shakes out over the course of the next 612 months #bitcoin mining And then below, they show an image that was captured at this Chengdu China Bitcoin miner meeting. It shows US states and their Power prices. These Chinese operations are looking to expand & the only way to do that and have the West embrace it is if they are being forced out by their controlling Government! The west loves to help those who are unfairly targeted by the CCP. The thing is, and it’s my opinion, is the government is the one who put this plan forward.

The CCP will always control companies and operations that are created in China. and they just got a free ticket into the WEST. Remember SOS, the Chinese mining company is moving to the WEST by partnering with an American firm. Well, it’s not only them. Bit Mining, a Chinese mining operation announced they were investing 25 million, in a new mining facility in Texasand I guarantee you, many more Chinese-American bitcoin mining deals are being sealed and sealed as I speak! China is infiltrating US data centers and their operations.

(Link #5 BIT Mining Texas) Here is a smidgen more evidence in my opinion, that this isn’t as bad as it seems. Jiang Zhoer, the founder of the Chinese BTC mining pool BTC.TOP tweeted this last week. We haven’t seen a crazy peak yet at this bull run, rather an unprecedented rounded peak, besides, the long position hasn’t suffered a serious defeat.

So even if we enter a bearish run, it would be a short-to-medium one, the market is likely to repeat a two-headed bull run as 2013 DANG Jiang, why you so bullish!? Well he continues and talks of the Chinese crackdown China does not release a new crack-down policy afterward, the bottom of this round is estimated at $29k(down by 55%), if the new major crack-down policy comes out before July 1st, the BTC might fall to $25k then start a V turn.

Too many institutions, funds buy the dip under $30K After this wave, according to Chinese practice, we will not see any new crackdown policy for at least 2 weeks. Regardless of a bull or bear market, a reversal, or a rebound in the future, there is likely a wave of rising at a large scale. He doesn’t seem worried whatsoever..and since his tweet last week, there hasn’t been any new crackdown policy news released.

And here is what is SOOOO interesting. Documenting Bitcoin posted a tweet and picture. They said China’s 1 Trillion Dollar mistake, #Bitcoin Miners being shipped away. With a picture of what looks like a farm being packed up and set up for shipping Well, those Miners are not new Miners those are OLD, like ancient old miners. They are actually Antminer v9s which only produce a max hash rate of 4 terahashes per second.

The standard for mining is the s19 right now and it produces up to 95 terahashes. Why would obsolete Miners, which belong in the Trash, be being shipped to other parts of the world? They wouldn’t be they would be going in the trash, and this picture is probably freaking OLD.

Unless this picture is just to fuel a narrative. And that isn’t the only SUS picture coming out of China. One of the original ones posted last Monday by Molly on Twitter said. Bitcoin Mining Farm in Sichuan after the government BAN, and it looks like an operation being dismantled But it’s not, just zoom in a bit that is a spool of new wire.

This isn’t a FARM being taken down, it’s most likely a DATA center being built. You don’t have spools of new wire for a demolition. You have spools of new wire for construction! So My opinion? This is just the China FUD of this cycle. Just like 2017 had its BIG China FUD regarding trading, ICOs, and the like and everyone thought the markets were done. Well it wasn’t over, and after the 2017 FUD, we went up one more time We won’t hear any new mining crackdown policy, and BTC will continue going up this time too. Cheers Ill see you next time!

Read More: SECs Shockwaves over Ripple

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