Chinese authorities could soon revise crypto mining ban
It looked like China’s stance regarding crypto mining was finally cemented with the ban imposed in May this year, after it had been going back and forth on the issue since 2019. This immediately caused a 50%+ BTC value drop and the exodus of many Chinese miners. However, according to CoinTelegraph, China’s National Development and Reform Commission is now seeking public opinion on the inclusion of crypto mining in its list of “phased-out” industries, seeing that the ban helped the U.S. to become the world's dominant crypto mining nation.
CoinTelegraph notes that the aforementioned Chinese commission officially included crypto mining to the list of outdated industries in late September this year, even though the bans were enforced in May. The newly issued call for public comments requests feedback from “relevant units” and “people from all walks of life,” and those interested in expressing their views on this matter can do so until November 21 via email, physical mail or direct comments on the commission’s website. Interestingly enough, the commission also posted an article where it informs that the Chinese Bitcoin hashing power dropped from 44% to 0% as a direct consequence of the bans. Additionally, the article points out that China’s hashrate share used to be 75% back in 2019, and the bans caused a redistribution that allowed the U.S. to become the primary hashrate provider with 35% share, followed by Kazakhstan with 18% and Russia with 11%.
If China revises its stance on crypto mining to allow this type of activity once again, we could see a reversed effect on the value of Bitcoin. Back in May, Bitcoin dropped around 50% to just under US$30,000, but managed to climb back up and achieved a new all-time-high a few days ago. A crypto mining ban lift in China could possibly trigger additional gains of up to 50%.