The Asian giant China has been on the tail of cryptocurrency miners as it seeks to enforce its ban on all digital currency-related activities.
Michael Saylor, the Chief Executive Officer of MicroStrategy Incorporated tagged the Chinese government recent move as a trillion-dollar mistake by targeting domestic crackdown against Bitcoin mining and other crypto-related activities.
Revealing this in an interview with Bloomberg last Friday, Saylor noted that Bitcoin generates as much as $10 billion for the Chinese market annually, with a general market growth rate of 100%. Through his words and actions, Saylor has shown himself as an established Bitcoin evangelist, noted that China would miss out a lot from the ban on Bitcoin.
The Chinese crackdown on Bitcoin and other crypto-related virtual currencies was partly due to its energy consumption requirement of cryptocurrencies based on a Proof-of-Work (PoW) consensus model. The clampdown has sparked a great offset in the Bitcoin network, proofed by a declining mining hashrate. The ban, in general, has forced the migration of miners out of China, moving out to Kazakhstan and the United States, where some of the new locations are explored.
The firm has recently surpassed the 100,000 BTC unit accumulation threshold. Saylor stated that Chinese miners and digital currency investors are losing out. However, this situation opens a new opportunity for others like his company, who purchased the cryptocurrency again at a discounted price. In addition, Saylor believes the clampdown on Chinese miners will create a good opportunity for North American miners who are now likely to see up to a 75% increase in revenue.
Many Bitcoin proponents have seen the Chinese clampdown on miners as a temporarily harsh measure due to its impact on the hashrate and price. However, it is believed that the clampdown will usher in a long-desired decentralization in mining processes and stir a switch to the embrace of green mining.
Image source: Shutterstock