iBankCoin
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Joined May 7, 2012
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CHINA HATES BITCOIN

China may be on the verge of banning Bitcoin mining.

From this article: China Bans Bitcoin Executives From Leaving the Country, Miners “Preparing for the Worst”

Chinese media is reporting executives of crypto exchanges have been ordered to not leave the country with a very rough translation stating:

“A number of informed sources say the executives of special currency trading platforms are not allowed to leave Beijing to cooperate with the investigation. In accordance with regulatory requirements, trading platform shareholders, the actual controller, executives and financial executives need to fully cooperate with the relevant work in the clean-up period in Beijing.”

As such, miners are seemingly preparing for the worst, with some thinking of relocating to neighboring countries or to very cold areas, such as Iceland.

China has been ramping up pressure on Crypto. So far they have banned ICO’s, Exchanges and now possibly they may ban the Bitcoin mining industry which creates 7.2 million dollars in new Bitcoins every day 365 days a year.

The world’s largest miner is in China: Bitmain. Bitmain controls 28% of Bitcoin hashing power. From: China’s Bitmain dominates bitcoin mining. Now it wants to cash in on artificial intelligence (well worth reading)

The Sophon unit will include Bitmain’s first piece of bespoke silicon for a revolutionary AI technology. If things go to plan, thousands of Bitmain Sophon units soon could be training neural networks in vast data centers around the world.

To grasp how a Beijing startup is poised to challenge the likes of Google, Nvidia, and AMD in the deep learning arms race, it’s essential to understand Bitmain’s pivotal role in the $70 billion bitcoin economy.

The company is a marvel of vertical integration. Bitmain designs the silicon that goes into its bitcoin mining rigs, assembles the machines, then sells them to customers around the world. It also operates the machines for its own account, runs vast bitcoin mines

Bitmain is run by a 31 year old named Jihan Wu. I assure you the Chinese government have paid him a visit.

China shutting down the miners would have a big impact on Bitcoin. Chinese miners going offline would reduce hash rate which would increase bitcoin transaction times and fees.

It would be a bad time to own a lot of crypto that does not have an emergency difficulty adjustment built in.

Bitcoin Cash, which has an EDA feature, is breaking out.

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4 comments

  1. ghostface

    As you probably know McAfee had dinner with Jihan last night and was supposedly told there would not be a mining ban. However, it seems like at least heavy regulation on mining is coming in China. Fine line between regulation and state owned there. This would set bitcoin back. Hopefully other governments don’t follow China’s example too much. I agree that Jamie would not have gone off like he did if he did not know of things in the works. Interesting times even without the internal consensus rules and forking dramas.

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    • CoinSpeak

      There is a chance that rather than ban Bitcoin mining China decides to nationalize it instead. Jihan gets a nice government position and China controls the majority of hash power for the world’s first and largest Cryptocurrency.

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  2. anecdotal

    go ahead flat earthers, bet against Altucher.
    https://www.coindesk.com/searching-problems-james-altucher-bitcoin-critics-youre-dead-wrong/

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  3. anecdotal

    must watch interview, finance guy
    https://www.youtube.com/watch?v=xkBpUL1VDKU

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