The Bitcoin mining ban in China hasn’t stopped yet. The latest province in China to experience the spread of this ban is Anhui, located in eastern China.
This continues efforts started in late May to crack down on Bitcoin mining throughout China. The government has been trying to prohibit Bitcoin mining since then as a way to reduce financial risks and to help with what they call a “grave” electricity supply shortage.
The Anhui province joins several others, including Inner Mongolia, Xinjiang, and Sichuan, in extinguishing Bitcoin mining in some of the most important mining hubs in the country. Before the ban started, Bitcoin mining in China was estimated to account for about 70% of all Bitcoin mining globally.
About 90% of Bitcoin mining in China has ceased since the government started rooting out mining hubs throughout the country. A lot of the Bitcoin mining operations in China have moved to other countries that are more favorable to cryptocurrency mining.
The Impact on the Bitcoin Market
Bitcoin is changing in some key ways since this ban began.
Bitcoin Price
When the Chinese government announced their ban on Bitcoin mining in May, the BTC/USD price was already on the decline. From May 12th to May 23rd, the price of Bitcoin fell a staggering $18,000, dropping to $34,259. The price has been up and down since then, showing stability but not substantial recovery. It hasn’t managed to push past the $40,000 resistance line and has stayed closer to $35,000 since then.
Energy Usage
The fact that Bitcoin has not continued going bearish can largely be attributed to the way blockchain creation has adapted. The algorithm Bitcoin blockchains use is updated every so often to reflect changes. Because a large number of Bitcoin miners drop off the map following the Chinese band, that caused the production of Bitcoin to decrease dramatically. The algorithm adjusted, as it is set to do automatically, and made it easier to produce Bitcoin as a way to compensate. This allowed Bitcoin production to stay on par with the digital asset’s price.
Long-Term Viability
The adaptive algorithm and how it works so beautifully to keep Bitcoin afloat has proven the cryptocurrency’s resiliency. On top of that, long-term prospects for Bitcoin are looking good because of how relatively even the crypto has stayed since the ban. Many analysts expected Bitcoin to continue going bearish for a while after the ban and while the various Chinese provinces are continuing to experience crackdowns.
That hasn’t been the case, though, and Bitcoin has managed to survive and stay at a fairly level. This speaks well to the long-term viability of the crypto and Bitcoin’s enduring value.
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