In news out earlier today, China mentioned that they will be making life more difficult for bitcoin miners in the region.
They are not going to ban bitcoin miners per say, just make life a lot more difficult for them.
Currently, Chinese bitcoin miners have enjoyed quite an advantage over other parts of the world due to the large electricity subsidies available in the region.
Especially among the hydroelectric and coal produced electricity.
Bitcoin miners have been taking advantage of this cheaper electricity for years.
However, now that looks like it might all be coming to an end.
The full news release can be read here:
(Source: http://fortune.com/2018/01/08/cryptocurrency-markets-tank-china/ )
What does this mean?
On first thought this news might sound bad, terrible in fact, considering that the majority of bitcoin mining takes place in that region.
The price reaction seen across the markets might help reinforce those beliefs.
However, in the long run, this is probably actually good news.
Miners in the region were enjoying an "unfair" advantage compared to most of the rest of the world. Basically no one else on the planet could mine bitcoin as cheaply as Chinese miners could.
Another important factor to consider is how mining was especially concentrated in that region.
A region that was not very transparent to the say the least.
If miners are forced to mine from all over the world it only helps with the decentralization of bitcoin. It would also likely squeeze the mining profit margin which would probably be a good thing for bitcoin prices.
The price drop across the board in cryptocurrencies wasn't solely related to China.
CoinMarketCap decided to remove a number of Korean cryptocurrency exchanges from their pricing indexes because the prices of coins on those exchanges were increasingly diverging from other parts of the world.
The "delisting" was done around midnight EST and distorted the price drops on many charts.
As people woke up and saw what looked like a large price swing, they assumed something terrible was going on and hit the sell button.
Which only exacerbated the move.
Since that time CoinMarketCap has announced what happened, and prices across the board have rebounded significantly off the lows.
Stay informed my friends.
Image Sources:
http://marketmadhouse.com/cryptocurrencys-crazy-prices-ethereum-surging/
Follow me: @jrcornel
Just my opinion so take it for what it's worth - whatever that is... With cryptos on track to literally take over the entire worlds financial systems, no one should look at a 5, 10, or even 20 percent price drop as anything more than a sale...
I just want to thank everyone who bailed on their coins this morning - you are most appreciated... LOL... HODL & Multiply
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what's the implication of that？
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Interesting news about the Korean exchanges being delisted from Coinmarketcap. The price difference is significant. I've caught myself syncing my Blockfolio account to a Korean exchange just to make myself feel better during a lull.
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I agree that the news from China is good news. A more even playing field should reduce the centralisation that has built up in recent years, although it won’t happen immediately as Chinese hardware will still be profitable (albeit less so) so is unlikely to be switched off. It will limit future investment though, creating a more decentralised network in the future!
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Will coinmarketcap add Korean markets back at some point do you think?
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Oh no! Bitcoin died again! The 229th time! It must be so dead now.
https://99bitcoins.com/bitcoinobituaries/
Crypto is dead. Dead to be alive :-)
P.S. Guess who bought all the crypto sold out today...?
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Nice post, thanks for sharing
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I've been using: https://www.livecoinwatch.com all day, great site! 😎
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Looks good, thanks for sharing.
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I use https://www.coinlore.com try it! you will like
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Didn't know this one. Great tip!
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No conocía este sitio Gracias!
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Do we know why the Korean exchanges were diverging from the rest?
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Oh..no wonder people were selling theirs, and i followed suit🤣😂
Thanks for the clarification.
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Can I just type "Agree" here without catching too much flack?
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Haha of course u can! What did u sell😆😂
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Hahaha well tell me you're in China?
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Nope.
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this is a lot of incidents happening at the same time, but everything will be back up and running again and we will see a big rise in prices for sure
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Yep, I see it as a rare opportunity for a discount in a bull market.
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There's a certain irony to as a community having created decentralised and distributed currencies, where we then still have centralised power houses (such as coinbase, coinmarketcap, etc) that have such a direct impact over the trends and futures of all of crypto.
If we want to truly have a distributed currency we need to stop centralising power in these corporations..
Great post though! A follow from me
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This is actually a very thoughtful post. You're right, this "decentralised" ecosystem is actually quite centralised and this might be its undoing.
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It's just worrysome how easily we're creating an exact replica of the system we're fleeing, in return of small profits and wide ranged appeal..
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Everything is red today. Which isn’t bad because it lets people hop on a crypto that was overpriced before. But its bad for my wallet currently lol
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Hey, nice photo and interesting write up. I am following you, can you follow me @xtophercruzeu thanks.
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Looks like markets are already starting to rebound... ANOTHER COMEBACK !
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Like taking the 5 best games off an NBA players stat line at the end of the season.
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I'm using https://coinlore.com, so don't care but interesting
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The Chinese Government may have some other motive as I don't think they would want the influence of the Chinese miners to diminish in the bitcoin playground. This may have been an attempt to tighten their grip on miners who don't agree with their policy but surely they won't hurt the interests of the chinese mining industry. They could have the desire to influence the cryptocurrency world as Chinese Government loves control and maintaining its influence.
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How funny a single website could cause a panic like that.
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@fr3eze I know! My heart just dropped at the same pace as Bitcoin :D
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Something is fishy with Korean prices, Either arbitrage is failing to get through there or prices are manipulated like crazy, usualy 100-100% difference than the rest of the world
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Blockchain Technology along with its Cryptocurrency and decentralized Apps is here to stay. The required infrastructare is already too well-established for Cryptocurrency to be abolished. However, your article well reflects how hard they try to cause any disruption by all means and in the end they will miserably fail. Cryptocurrency is unstoppable. Thanks for your great article @jrcornel I am looking forward to following you.
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So many markets on red, so many opportunities to make money!!
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China’s government cannot win the battle against blockchain. I don’t see how can those supposedly intelligent people, be able to repress a technological revolution such as blockchain.
They are just trying to win time until the inevitable comes. Prohibiting things have never worked because it always creates a black market. They can ban whatever they like, but people will still use them even on an clandestine way
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If they try hard enough then they will know for sure, because the energy being used is very much on-grid. So if this forces the remaining underground miners there to use solar then that's a win for the environment. Using subsidized coal energy to mine bitcoin at the expense of the health of the environment is a terrible idea.
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Very informative thanks for sharing.
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Both sound like good news to me. Yes, China had an extra edge as far as Bitcoin mining goes. Which was leading to centralised power in Mining, and when this news breaks in I was somewhat amused.
Second, hell yeah they did right to remove south Korean exchanges from coin market cap, like three to four day ago prices of EOS jumped to 15 $ in EOS, I was thinking of making good profits but nothing happened in the west! lol
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I suggest that we leave everything to the market forces. South korea momentrily being out of the game may not have a significant impact afterall. I upvote you.
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I think the problem with coinmarketcap is we all used it but it's taking data from
I always check the exchanges as well and haven't really seen a drop on them.
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The exchanges in Korea have definitely made things interesting.
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Coin market looks like a bargain basement sale. Buy buy buy! Thanks for your post. 😀
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I concur that the news from China is uplifting news..
Upvoted and resteemed
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I hope people were able to capitalize on this temporary dip, I know I was. The market seems to be a bit stronger since the last "negative" China news. Could be a good sign...
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I think that with crypto people panic way too much. This bad news caused a small dip and then everyone freaks out and panic sells. HODL PEOPLE
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very good post
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Awesome!
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China has total unfair advantage in mining if they had to pay fair price for electricity maybe some mining would move to my area in Canada
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Thanks for the info and i hope they will be more fairness in the bitcoin game
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@jrcornel I also wrote about it yesterday.
https://steemit.com/challenge30days/@lucygarrod/bitcoin-bulls-see-silver-lining-in-china-mining-ban
I don't see China ban as an absolute bad news either :)
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Thanks for the wonderful piece of information, I made a short post asking why all coins are going south-ward including almighty bitcoin. You just answered my question. Thank again, great post.
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Most exchanges are closed right now, so when new people will start flooding in, a lot will change.
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China is still throwing their weight around. I'm surprised that prices in the Korean exchanges are still so much higher. You would think that arbitrage would have fixed that by now. I guess exchange regulations put in place by various governments are blocking the efficient flow of money.
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I wish youtubers with thousands of followers would stop saying things like; China is banning bitcoin, China is banning mining, China is making it illegal to do this and that...
These content creators are the ones causing the fud as they are usually just spewing ignorant shit that they really know nothing about.
Like you, they should have looked deeper into these news articles and realized the truth about what's going on, so thanks!
But there's too many nefarious or ignorant bloggers out there looking for a quick easy buck while leading their sheep down the path of opinions, fud, and lies.
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It's absolutely crazy how some people will see these market changes and FUD sell quickly. China has been fucking around with "regulation" and "banning" for a while and I truly don't think they would every completely ban it. It's crazy to see the market move so much with the news.
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whatever the chinese government dont get to earn, nobody can. lol
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https://steemit.com/money/@jesusvmorales/how-to-mine-equipment-needed-to-mine-and-the-5-most-easy-and-profitable-coins-to-mine
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Hi there, nice post, I write about this kind of post everyday, if you want to get more information about this follow my account and upvote my latest post.
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no one else on the planet could mine bitcoin as cheaply as Chinese miners could
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Just read that LOL. Our ass is theirs pretty soon.
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I now know that bitcoin mining is done in China as electricity charges are less.
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Given that the Chinese bitcoin miners enjoy a big advantage compared to other parts of the world because of the large subsidies for electricity in the region, this could affect the Chinese economy and their position on bitcoin
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Nothing like good old FUD lol. It really helps the market and experienced traders.
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Thanks for the real back story...I was wondering what happened.My account worth on exchange dropped 20%.
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crazy chinise!!
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Great post! Would you have any recommendations on any other sites like coinmarketcap?
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will have a negative effect on the use of energy
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The SEC suspending Bitcoin trading didn't help the price any. People and governments are threatened by BTC and alts; which is all the reason to buy more. Anyone know where we can buy bitcoin at reasonable fees? Network fees are ridiculous right now!!!
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A few days ago it was not possible to buy Bitcoin through Coinbase - the deal just didn't go through - and was rejected by my credit card. Ethereum then went through instantly as few moments later.
If I had a fortune in Bitcoin, or great hopes of making a fortune speculating on it I would be very worried, cashing out and looking for a safe have to park my new found wealth.
Where that safe have in who knows now. Gold is not as obvious a place as it once one.
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As a result, Chinese miners are the most economical
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If we seriously consider it, Asia had been the continent that had really benefitted from Bitcoin why all the marginalisation in China? Really this has got to stop.
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I think what Coinmarketcap did is quite unprofessional. I think it is good and it makes sense they did this and its a great website for sure. BUT they should have announced this a few days before they do it, not just tweet about it on the day ...oh btw everything will go down 25% today ... What about insider information on going ahead with this ..it seems a little bit fishy to me.
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It's great. I don't think you can make bitcoin manners suffer or to make things difficult for them. Since it's a global business even if you are in a region or country which do not support crypto you can still partake in the business of cryptocurrency.
You can as well read this..
https://steemit.com/nigeria/@izuchukwu/bringing-back-the-power-from-government-banks-to-the-people
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The gin wave turns into a short time plus bonus. Purchase
It should be opportunity for you.
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there should not be robust and speculative movements for stability
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Oprating systam plant
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Seriously? I never thought about that. Thanks a lot for sharing.
Will check for that the next time the market drops significantly!
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