Hot Features
Premium
Register for real-time alerts, custom portfolio, and market movers
The bitcoin network was created in 2009 and since then, crypto has been one of the hottest topics both among enthusiasts and professionals. It is an alternative coin that possesses a huge number of advantages, including complete anonymity and outstanding data security.
Cryptocurrency and Bitcoin, in particular, are used for all sorts of transactions, including gambling at online casinos approved by NZCasinoHEX and ordering pizza for a party. The success and popularity of blockchain technology made authorities want to control it as much as possible. Especially if we are talking about such regulated countries as China. However, the recent news shows that BTC is a tough nut even for one of the most powerful countries. And below we’ll explain why.
Difficult relationships between China and Bitcoin
Not so long ago, the Cambridge Centre for Alternative Finance (CCAF) published a report on the global bitcoin mining market. According to it, China was one of the largest mining hubs, with around 70% of the total processing bitcoin power. But in the summer of 2021, this percentage dropped almost to zero after the local authorities initialized the crypto witch-hunt.
So what has happened? In May 2021, China banned mining and in a matter of months, there were almost no miners at all. At least that’s what the official data showed. But in September, the number of miners who came back significantly increased. Many experts were wondering why those enthusiasts decided to return to China but we believe that they actually didn’t go anywhere!
For some time, they went underground, altered their IP addresses, and did everything to hide any mining activity in the country. By September, they realized that the laws didn’t seem that scary and decided to resurface.
To confirm this assumption, let’s look at the computation power of the BTC network. In September 2021, the reported hash rate in China reached 30.47 EH/s compared to 0.01 EH/s in July 2021. This data suggests that within three months, Chinese miners have actually formed the underground activity and didn’t go anywhere. This doesn’t mean that the government won’t come up with other ideas for banning crypto in the future but we have VPNs that significantly complicate the restrictions.
Hashprice and its influence on the market
Let’s leave China alone for some time and discuss hashprice, a rather important indicator of the crypto market. It is a metric created by Luxor Technologies that represents the expected mining value and profitability of the miners. This metric is represented in dollars per terahash per day, where terahash is the computation power of equipment used for mining.
The hashprice went down because of many factors but mostly because of the significant price of the BTC in relation to USD and the increased number of miners trying to enter the market. In addition, every two or three weeks, the mining network adjusts to the size of the active power and becomes more difficult.
When the hashprice drops and it becomes unprofitable to continue mining, public companies may need to sell bitcoin to keep themselves afloat. However, everything is different during this decrease. We don’t see any significant market fluctuations, and mining companies seem to hold BTC as much as they can.
This gives clear signals not only to experienced miners but to beginners as were. There are no obvious reasons for stressing out about the crypto drop in the long run. BTC mining will be totally ok even if there are several months of price fluctuations ahead. Once everything settles, Bitcoin will be stronger than ever, the hashprice will increase, and governments will work on the ways to restrict mining and control the crypto market again and again.
Final thoughts
Bitcoin has shown a significant decrease in the past few months but this didn’t have much impact on the popularity of crypto and the number of miners trying to enter the market. Moreover, countries like China continue banning crypto and searching for ways to wipe it out. But we don’t think that this will ever happen, and thousands of experts support this point of view. So if you want to buy crypto, this is your chance. Don’t waste it!
Author: Grace Tennet, a content manager of New Zealand gambling source and an expert in the iGaming sphere. For more works, visit https://nzcasinohex.com/author/gracetennet/.
