You are not unaware, China has torpedoed the crypto ecosystem several times in recent months. Last cartridge in date, the closure of mining farms ! This news caused a sense of fear, but some see this act as beneficial to the rest of the world.
Move the farms, but where ?
Regulation in China continues to tighten the screw by forcing its miners to unplug. Large investment groups such as IBC Group have even announced to stop their mining activities in China so the climate is no longer favorable. It is true, this is one of the first times in the history of the industry that it becomes more interesting to relocate out of China !
IBC Group has planned to move its activities from China to more temperate countries with regard to cryptocurrencies. Among them, we can count the United Arab Emirates, Canada, Kazakhstan, Iceland (which has undeniable thermal predispositions) and various countries of South America. The United States is also a popular destination for other mining companies currently positioned in China.
After moving their headquarters to Toronto, Canada, IBC Group plans to make the country a new stronghold of global mining. Its president, Khurram Shroff expressed on this :
“A transfer of mining operations outside of China will be a huge opportunity for Canada. the Toronto Stock Exchange recently listed the world’s first Bitcoin ETF, so the nation is already ahead of the curve, in terms of cryptocurrency integration”
TRULY decentralized decentralization
To bounce back on the statements of the President ofIBC Group, I would say that this ban of China is beneficial for the sustainability of the mother blockchain. Initially, the relocation of miners will allow the market to breathe a little following the readjustment of the hash rate. Then there was some inconsistency between Bitcoin’s raison d’etre and its “survival”. Indeed, Bitcoin offers itself as an alternative to fiat currencies, allowing everyone to become their own bank(see what is happening in El Salvador). These values advocated by the crypto leader are the foundations of decentralization.
Do you really think this model can be viable when a state holds more than 66% of hashrate power ? From my point of view, this news will spread the minors in several countries, with different legislations, to avoid future unpleasant surprises !
Passionate about innovation and disruptive projects, Blockchain technologies quickly caught my eye ! I enjoy evolving in this bubbling ecosystem and discovering all its facets ! Why not share this with you ?
DISCLAIMER
The words and opinions expressed in this article are the sole responsibility of the author and should not be considered as investment advice. Conduct your own research before making any investment decisions.
