66
Bitcoin – or rather bitcoin mining – is a tough enterprise to beat. While the currency may be down for the count at press time and trading for what appears to be a measly $46,000 per unit, the industry has managed to recover from the recent China ban that saw all crypto mining projects unceremoniously removed from the nation’s turf.
Bitcoin Fought China and Won
China made headlines over the summer when it announced that all bitcoin mining and projects related to extracting crypto units from the blockchain were no longer allowed to call the nation home. Orders were sent out from Beijing demanding that China make itself more carbon neutral. This saw roughly half the world’s miners having to shut themselves down overnight, and several went to areas such as Texas, Florida, and Kazakhstan to keep their businesses going.
What was crazy was that China could take such action considering it was clearly profiting from bitcoin mining activity. At the time of the ban, it was believed that China accounted for anywhere between 65 and 75 percent of the world’s bitcoin mining, so the idea that it would simply shut down everything practically overnight was ludicrous and even foolish in some analysts’ eyes.
Nevertheless, China has shown it wants nothing more to do with bitcoin, as just a few weeks later, the country announced a new law banning all crypto transactions. Not only could people no longer extract crypto units from the blockchain, but they also couldn’t trade digital assets. Bitcoin and many other forms of crypto suffered from this news, with BTC falling from the high $40,000 range down to less than $30K within a relatively short period.
Kevin Zhang from crypto firm Foundry, however, explained in an interview:
Bitcoin withstood a nation-state attack of China actually banning mining, and the network shrugged it off.
It appears the dip bitcoin incurred following the China ban helped things along in many ways. For example, with the price falling so low, many investors saw an opening to more buying opportunities, and traders were able to snatch units up at prices that hadn’t been seen in several months.
Bitcoin mining engineer Brandon Arvanaghi says the situation proves bitcoin to be stronger than anyone could have anticipated. The fact that it survived such an attack and even rose to a new all-time high a few months later is proof that the currency has come a long way, and doubters should consider switching to the other side.
The Superman of Crypto!
He says:
The bitcoin network withstood an attack by a major superpower and emerged stronger than ever six short months later. How can anyone ever argue, ‘But what if nations ban it?’ again?
Several industry experts claim that they didn’t expect bitcoin to exhibit such a speedy recovery. They felt bitcoin would be bearish through the early portions of 2022.
