‘Top’ Bitcoin Miner Predicts Grim Crypto Future In China

[ad_1]

The founder of the Bitcoin mining pool BTC.TOP, Jiang Zhuoer, made another prediction on the future of this sector in China. Big BTC mining operations have been forced out of the country, as the Asian giant clamps down on the industry.

Last June, Zhuoer called the new measures imposed on China less serious. The country was known to ban Bitcoin, cryptocurrencies and everything related to it from time to time. This time it was different, the crackdown is real and could have other implications.

Zhuoer believes the crypto industry in China is heading for a complete ban where no crypto entity will be allowed to have operations or legal offices. The country continues to punish cryptocurrency-related companies.

In Beijing, the central bank of China and the local regulator have ordered an undisclosed company to revoke its business registration, Bloomberg reported. The crackdown has targeted stock exchanges, miners, national banks and other entities.

The Asian giant could try to meet environmental requirements, but many experts have questioned this justification. The majority agree that China is targeting potential capital outflows, sources of corruption and even Bitcoin itself for its potential threat to their CBDC project.

Antoni Trenchev, co-founder of crypto lender Nexo in London, told Bloomberg the following:

While not directly affecting crypto, China’s crackdown on tech companies is another example of its regulatory muscle flexing against an industry lacking oversight. Bitcoin is also caught in the crossfire of Chinese regulation as it is seen as a threat to the digital yuan.

Jiang Zhuoer predicts that in the future, not all cryptocurrency companies will be allowed to have legal offices and companies in China. https://t.co/MtaeMtWdjd

– Wu Blockchain (@WuBlockchain) July 6, 2021

Bitcoin Mining Titans to move to the United States?

In the meantime, BTC miners could be the majority moving west. Ironically, the United States could be the next major center of operations for this industry. The North American country has had a controversial stance towards the crypto industry, but unlike China, the US government model has allowed some states to become ideal places to host BTC miners.

Zhuoer and several Bitcoin miners could ship their equipment to Texas, South Dakota, Tennessee, or the city of Miami. Compared to China, operating in the United States could be more expensive, almost 6 times more expensive, and miners could face resistance from the local population.

However, the United States might be the less risky option. Zhuoer has considered moving to the Middle East, Russia or other places, but authorities in those regions offer less guarantees. Some Bitcoin miners have seen their equipment taken over by corrupt police and law enforcement agencies.

At the time of writing, BTC is trading at $ 33,874 and has seen volatility over the past day with sideways movement around its current level. At the same time, the leading cryptocurrency by market capitalization was outperformed by Ethereum (+ 4.4%), and DeFi tokens, such as UNI (+ 15.9%), SUSHI (+ 22.4%) and AAVE (+ 18.5%).

BTC moves sideways in the daily chart. Source: BTCUSD Tradingview

[ad_2]