China bans Bitcoin mining

Decentralized systems are incredibly resilient, because everyone can join. So, when China banned crypto in 2017, it lead to dismantling of 90% (!) of the world crypto exchange services that were Chinese at that time – and this did not stop Bitcoin from reaching its then-all-time high just 3 months later.

This year the crackdown would be aiming at crypto mining. In order to mitigate “social risks”, financial capital will not be allowed to intervene in mining, meaning that big mining farms will have to leave the country. As of 2020, China is providing approximately 65% of the world’s Bitcoin hash rate thanks to its cheap energy (coal and hydro) and manpower. So if Chinese mining disappears, the network’s computational power will certainly go down. However, the system is resilient, and in some time it will find its balance again, and probably changed for the better. Taking into account a massive “green mining” trend, it is likely that miners will go to the places of cheap renewable energy, be it a Georgian river dam, an Icelandic hydrothermal station or an American oil field to capture stranded natural gas.

Overall, this might be a good news.