China, ready to change its mind on Bitcoin?
A big mistake on the part of China? – China is starting to realize that banning bitcoin (BTC) mining from its soil may have been a terrible idea after all. Now fully aware that the United States has become the new BTC mining superpower in the operation, the Chinese authorities are questioning the consequences of their authoritarian choice.
China and BTC mining: backpedaling in perspective?
The latest data from the Cambridge Bitcoin Electricity Consumption Index (CBECI) gives the United States a share of over 35% of the total computing power (hashrate) deployed on Bitcoin’s blockchain network.
At the same time, China, once the world’s largest crypto-mining market, has completely disappeared from the radar in just a few weeks, so ruthless has been its ban on bitcoin miners. A situation which seems logical, but which obviously also begins to suddenly worry officials of the country in the One Party.
The National Development and Reform Commission (NDRC) of China in any case wishes to question the relevance of continuing to ban crypto mining, according to a certain form, made available on the site of the state body.
More specifically, the NDRC wants to publicly ask the question to Chinese entrepreneurs, who are being asked to give their opinion: should cryptocurrency mining activities remain on the list of industries or be “phased out”?
National Development and Reform Commission questions the future of Bitcoin mining
One month to comment on the ban on Bitcoin and cryptocurrency mining
This call for public comments is opened by online form directly on the NDRC website, by e-mail or even by post. The consultation will remain open for one month, from October 21 to November 21, 2021.
The disappearance of competition from Chinese miners has really changed BTC mining for the better – which was the first to be banned in May / June. Indeed, once dangerously centralized in China, the computing power of the BTC network is now much better distributed around the world.
Even though the United States is now in first place, its share is thus far from hegemonic, and Canada, Russia and Kazakhstan also account for a sizeable percentage of Bitcoin’s hashrate.
If China makes the mistake of not reversing its arbitrary decision, there is a good chance that such decentralization of mining will take place in other cryptocurrencies as well. For example, the forced closure of the large Chinese Ethereum (ETH) mining pools that were Sparkpool and Bepool (almost a quarter of the hashrate between them), will most certainly improve the geographical distribution of the computing power of the Ethereum (ETH) network in the coming months.