Dovey Wan, a well-known Chinese investor, speculated on a potential miner exodus from the nation. Where will they be going?
In one week, Chinese authorities and watchdogs released two terrifying alerts. Bitcoin (BTC) price has dropped to $30,000, a level not seen since January. There is proof that Chinese Bitcoin (BTC) miners are taking these warnings very seriously.
For miners, has paradise been lost?
Dovey Wan, the founding partner of Primitive Ventures and a top-tier crypto specialist, believes that the Bitcoin (BTC) network’s net hashrate will continue to decline. It has already dropped by 30% since mid-May and is now expected to be 120 EH/s.
Although the mid-April decrease in Bitcoin (BTC) hashrate was most likely caused by a coal mine explosion in Inner Mongolia province, the continuing decline may mean that miners are leaving China.
Mrs Wan acknowledged that many Chinese miners are planning to relocate abroad. Since 2018, they also predicted an unprecedented crackdown on Bitcoin (BTC) mining. As a result, mining operations will relocate elsewhere.
She says that most rigs will move to Pakistan, Kazakhstan, and “other neighboring underdeveloped nations” that have historically been welcoming to Chinese entrepreneurs.
Mrs Wan also stated that some Chinese miners are drawn to Africa by low-cost electricity and are looking into mine Bitcoins (BTC) opportunities there.
Bitcoin 2.0 Mining
Meanwhile, such a migration could help the flagship cryptocurrency’s place. Vijay Boyapati, a seasoned Bitcoin (BTC) analyst, believes that Bitcoin (BTC) would profit from its ban in China.
If the Chinese government restricts mining operations, Bitcoin (BTC) miners may have to look for ways to mine in less repressive countries.
Consequently, if the bulk of miners leave China, the conventional “China FUD” will be debunked.
At the same moment, influential cryptographer and CEO of Blockstream Bitcoin (BTC) production studio Adam Back is confident that China has never “truly” banned Bitcoin (BTC). As a result, all of these frightening warnings are simply “missing in translation” problems.
As previously reported by U.Today, yesterday’s anti-Bitcoin (BTC) announcement culminated in a double-digit drop in the king coin’s price. Earlier this week, Bitcoin (BTC) reached $30,000, but China FUD suppressed the price.
Moving Chinese Bitcoin (BTC) capacity overseas, on the other hand, would be a time-consuming and challenging task for mining behemoths. Consequently, mining pools with existing operations outside of China can profit the most from this “exodus.”