According to the Wall Street Journal, a Chinese government agency was ordered last week by authorities to help "guide" a shutdown of various crypto currency mining operations.
Related to this, a study by Chainalysis which reports various metrics on cryprocurrency activity, has reported that China accounts for nearly 80% of global bitcoin mining even with the recent expansion in Russia.
While I certainly expect the local governments in China to heed this order, I find it hard to believe that most of the crypto mining infrastructure is going to just evaporate especially since China has already cracked down on mining operation in the past.
While the reaction of miners is still unknown, BitMEX's Arthur Hayes stated, "I don’t think miners have been sitting on their hands. Some people have already moved their hardware out of China.”
How do you think this will pan out? And how do you think this will affect the demand of bitcoin or the transaction cost of doing business?
OTCQX:GBTC -3.25% today