China’s crackdown on Bitcoin (BTC) mining is currently facing determined responses across the cryptocurrency ecosystem. One of the first Bitcoin exchange operators and co-founders of Zap Protocol, Nick Spanos, stated that the crackdown just proves BTC is an unstoppable force:
“if the world’s second-biggest economy can’t crush, devalue, and manipulate Bitcoin.”
BTC’s price appears to go up once regulatory setbacks get digested by the cryptocurrency community. Spanos noted that the crackdown is increasing scarcity as a result of being fewer miners relative to the transaction volume. He underscored the increase in miners’ profits while the mining difficulty continues to decrease. He stated:
“Bitcoin’s algorithm adjusts roughly every two weeks to allow one block of transactions to be mined every 10 minutes. So, it’s become both easier and more profitable to mine Bitcoin. That’s a recipe for enticing more miners back in.”
Spanos stated that miners migrating from China would find a place with instant neighbors, like Iran, Kazakhstan, and Russia. He added:
“Others in the region would also be well-served to seize this opportunity.”
Recently, one of the biggest mining groups operating in China unveiled its plans to move away from the country and then distribute its mining operations among the United States, the United Arab Emirates, Iceland, Canada, and Kazakhstan.
Spanos said that BTC’s price has always surged after regulatory setbacks are ‘digested entirely by the community.’
In the past week, Galaxy Digital CEO Mike Novogratz enjoyed a ‘big net positive’ for BTC in China’s crackdown attempt. He mentioned that the market crash from an all-time high and then followed by high volatility was a great and welcomed test for the crypto ecosystem in general.