By
Chimamanda U. Martha
April 19th, 2024
China’s actions related to the crypto ban could provide a welcome breeze to the other nations.
David Marcus who heads Facebook Financial recently tweeted about how China’s crypto ban is a great development for the first cryptocurrency Bitcoin. He believes it would transfer the BTC mining power to the West.
China has recently asked all financial institutions in the country to resort to stricter restrictions on crypto operations. China hosts more than half of the crypto miners of the world and this announcement will likely lead to a mass exodus thus giving the West a chance to consolidate its crypto industry. Although crypto traders are worried about the price crash and instability in the short run due to this crypto ban, many in the industry share positivity with regards to better performance in the long run. The key reason being that the shift of BTC miners to the West will encourage a better hash rate distribution and stability in bitcoin mining.
David Marcus heads the financial division of the social media giant that includes Facebook Pay, Novi, and other financial services offered by Facebook. The French-born entrepreneur is also a co-creator and board member of Facebook’s famed crypto project Diem, previously known as Libra.
Others who Share Views of Marcus on the Crypto Ban
On close examination of the situation, Marcus seems to be heading in the right direction. Several others seem to have a similar opinion about China cutting ties with the massive crypto operations in the region. Their Twitter feeds corroborate their views on how this bearish trend will reap benefits in the years to come.
Crypto exchange Luno’s CEO Marcus Swanepoel tweeted about the patterns that can be seen throughout the cryptocurrency’s initial issue identification to the final drop in prices. Indian cryptocurrency exchange Coinswitch Kuber’s Chief Business Officer Sharam Nair used one of Nietzsche’s most popular adages ‘What doesn’t kill you makes you stronger’ to define Bitcoin’s resilience towards constant kicks and shocks.
Brandon Arvanaghi, a former Gemini security engineer and a bitcoin mining engineer spoke about the dramatic shift in the crypto industry that will soon be taking place in the next few months. He commented on Texas being one of the possible US states where the bitcoin miners will eventually settle. His confidence in Texas emerges from the fact that the state’s governor Greg Abbott has been a promoter of Bitcoin mining.
Some days back, Miami’s Mayor Francis Suarez agreed that the city has been trying to woo Bitcoin miners on the strengths of providing clean and cheap nuclear energy. The mayor wishes to make Miami a Bitcoin hub. Such an inexpensive clean source of energy, he believes, would offer the crypto miners a great opportunity to enhance their mining activity and thus in turn help the city become a crypto hub.
China’s recent announcement has not been a sudden event as in the past the country has systematically shut down Bitcoin transactions. The Agricultural Bank of China, Sichuan Energy Bureau, in conjunction with the Local Development and Reform Commission has taken decisions in the past to put a stop to all crypto-based transactions in the region. However, China’s actions could provide a welcome breeze to the other nations. Twitter comments are full of interesting possibilities regarding China’s recent actions and whether it is genuine or has a hidden agenda. But for now, the US seems to be waiting in anticipation to give the crypto miners a new home.