Will Bitcoin "mining" leave China?

The National Development and Reform Commission has issued a document that may hang a "Sword of Damocles" over the Bitcoin mining machine industry. Where will China's Bitcoin mining companies go? Is the mining "pill" or a false alarm? TokenInsight analysts interpret this.

On April 8, the National Development and Reform Commission issued the "Guidelines for Industrial Structure Adjustment (2019 Edition, Draft for Comments)" (hereinafter referred to as the "Catalogue"), which involves three categories of industrial activities: encouragement, restriction, and elimination. Virtual currency "mining" activities appear in the elimination category.

In the past six months, the IPOs of Canaan Creative and Bitmain have been blocked. Coupled with increasingly stringent policy supervision, increasing social controversy, and the long bear market of digital tokens, practitioners have become like frightened birds. As soon as this news came out, practitioners have been discussing: Where will China's Bitcoin mining companies go? Is mining a "pill", an industry turning point, or a false alarm?

In this regard, Michael Zhong, an analyst at TokenInsight, said:

“If this draft for comments is finally implemented, large-scale miners may abandon domestic resources during the flood season and turn to foreign countries to find suitable electricity resources for mining.

Because the current competition in the mining industry depends heavily on electricity costs. Once mining companies lose their domestic electricity bonuses, they will not be able to compete with their foreign counterparts and will be forced to go overseas (such as Southeast Asia) to make a living.

If this happens, the situation faced by Chinese mining companies will inevitably become more severe due to many uncontrollable risks such as industrial transfer. However, dialectically speaking, mining business will not only be concentrated in China, but BTC mining will become more decentralized. "

A large number of top overseas media such as

CCN (http://t.cn/E6lRmV4),

The Korea Times(https://dwz.cn/gqtdizBX),

South China Morning Post (https://dwz.cn/w2lJk4oI),

Tech in Asia(http://t.cn/E6lRMA6),

MIT Technology Review(http://t.cn/E6l8FiC),

Information from TokenInsight is cited.