Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.
ARK36 director predicts Bitcoin decentralization due to China crackdown. The mining pool is said to adopt decentralization by halting transaction filtering.
For the past couple of weeks, Bitcoin and the general cryptocurrency market has experienced adverse effects on prices. The dip in the prices can largely be attributed to China’s recent crackdown on cryptos. Even though corrections for most cryptocurrencies have begun to be witnessed, the crypto market still remains unpredictable and highly volatile. Historically, Bitcoin has had a bittersweet relationship with the Chinese. In the past, China has unsuccessfully attempted to arm-twist the cryptocurrency market by trying to change the rules of the game. Most cryptocurrency stakeholders are of the opinion that the recent Chinese crackdown will negatively impact Bitcoin. However, one pundit believes that the move is likely to disperse Bitcoin miners as they try to find friendly mining environments in other diverse places and regions which will support BTc decentralization.
However, some market experts believe the price of Bitcoin and other cryptocurrencies will soon pick up once many Bitcoin miners have reestablished themselves in other regions. Ulrik Lykke, an executive director at ARK360 is one such man. In a recent interview with the media, Ulrik noted that China’s crackdown will result in Bitcoin’s decentralization, helping the digital coin in the long run.
According to Ulrik, the hash rate is bound to increase when miners start exploring more lucrative places for Bitcoin mining. While China has been lucky to accommodate most Bitcoin miners in the world, no other place is likely to enjoy such dominance in the future which will positively influence its decentralization, the cryptocurrency pundit further added.
Most observers, including Lykke, think that the crackdown is meant to provide a soft landing for China’s CBDC, the digital yuan. He however thinks that the move is uncalled for as the two, yuan and Bitcoin, can coexist harmoniously. Additionally, he observed that Yuan’s launching isn’t guaranteed hence, no reason to hinder Bitcoin’s thriving. In fact, Ulrik believes that the use of blockchain technology can give the two digital assets a mutual relationship, helping each other to thrive. Besides the crackdown, more industrial activities, including the halting of transaction filtering will be a plus for Bitcoin.
Marathon Mining Pool
Marathon Holdings, a publicly listed mining pool, announced that it had already adopted Taproot, the latest codebase given by Bitcoin developers. Taproot enhances privacy, scaling, and comes with technical advancements. The mining giant further said that it has also stopped transaction filtering. Fred Thiel, the firm’s director, noted that such adoption of Taproot and the halting of transaction filtering will cause Bitcoin’s decentralization, transparency and inclusion
Bitcoin’s Short-term Future
Meanwhile, Bitcoin’s volatility is believed to be short-term. When Lykke was asked what he thought about Bitcoin’s volatility, he said that Bitcoin will remain volatile in the short term. However, he suggested that the market will return to norm eventually.