Micheal Saylor: “China’s Ousting Of Bitcoin Miners is A Trillion-Dollar Mistake.”
While on a recent Bloomberg interview, MicroStrategy CEO and chairman of the bitcoin mining council, Michael Saylor, has opined that the Chinese authorities’ recent clampdown on crypto miners will have some positive consequences.
China’s Mistake Is a Blessing To Others
Saylor believes that China is making a mistake, and their mistake will be a good opportunity for other countries even though bitcoin price and hash rate are currently on a decline. As previously reported on Tokenhell, the Asian country has intensified its crackdown on the digital currency space since the beginning of this year.
Their primary focus has been on bitcoin miners forcing them to stop operating in the country because of environmental pollution. China’s actions have had a profound impact on the network instantly because it has the largest concentration of bitcoin miners. The crypto market has been on a decline, while the hash rate is now at an all-time low.
The difficulty adjustment rate hasn’t appropriately recovered because migrating miners are yet to settle in their new environments. The rate may change at the next adjustment period.
Saylor On Bitcoin Price Crash
While speaking about this price decline during his Bloomberg interview, Saylor argued that China’s enforcement of stopping bitcoin mining operations has caused many miners to sell most of their bitcoins. Hence, the cause of the bitcoin price decline.
The investment billionaire said China’s “trillion-dollar” mistake provides an opportunity for other countries to make revenue from bitcoin miners’ operations. Saylor said, “China’s 51% share of the bitcoin market meant an $11 billion annual revenue on a business that keeps growing every year. Suddenly the authorities forced it to stop and cleaned out the industry from the country. I am convinced that this is a trillion-dollar mistake by China given bitcoin’s current growth rate.”
Despite tagging it as a trillion-dollar mistake, Saylor acknowledged that it is only a superpower nation like China that can afford to make such mistakes. Saylor went on to say that ‘western investors,’ including MicroStrategy (where he is the CEO), now have an opportunity to invest more in the market at the current low prices.
He further said North American miners would be the greatest beneficiary of these events because their profits will increase by 50% to 75% for a considerable period while their costs will remain.
China’s Stance On Crypto Has Been Clear and Consistent from The Beginning
In 20213, China decided that there was no real meaning to bitcoin and barred financial institutions from handling it. Four years later, it made shut down crypto exchanges and made initial coin offerings (ICOs) illegal. Icos are stock sales compensated by bitcoin. Last month, it expanded the bank ban to destroy any leveraged speculation, but the bitcoin price soared.
Despite this clear and consistent disdain for bitcoin and cryptocurrency, the Chinese population embraces the crypto world. Also, the emerging support of institutional investors for the cryptocurrency space has tripled the bitcoin price over the last 12 months.
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