Bitmain Founder Warned Of Possible Threats For Bitcoin In The Future

Jihan Wu, the Bitmain founder warned of possible threats for bitcoin in the near future as he told  Chinese miners there are “environmental protection issues” so let’s read more in our latest Bitcoin news today.

The institutions now buying or holding BTC could become even more concerned about the origins of their coins and this idea has been going on for a while now among investors. Kevin O’Leary who shifted 3% of his portfolio in BTC, claimed in various mainstream media news channels that the coins must be “produced with clean energy” and not mined in china as he said in an interview:

“institutions will not buy [BTC] mined in China, coins that have been mined using coal to burn for electricity, or coins mined in countries with sanctions on them.”

Wu added that China has environmental protection priorities and as the report highlighted there’s no precedent of crackdowns in the Bitcoin mining activities in China. In Inner Mongolia for example, the local authorities suspended crypto mining due to the country’s environmental commitments. Most government officials in the country raised questions on the crypto’s use for the real economy but Colin mentioned that the current deputy governor of the People’s Bank of China, Li Bo, could be getting used to Bitcoin and other crypto-assets.

The Bitmain founder Jihan Wu warned that with the blackouts happening in the Xinjiang province of China, most BTC mining operations were halted in the region and the hash rate saw a drop. Besides the network congestion spiking, the fees did as well. At the time of writing, according to explorer Mempool. space, the low priority transaction on Bitcoin’s network cost about $11.20 and a high priority one up to $19.00. Purgeable transactions have a fee inferior to 19sat while in contrast, the high priority one has an average cost of 100 sat. The data from CryptoQuant indicated that the fees paid to BTC miners increase over the past week with the charts showing that the miners made over $15 million this period. Due to the power outages in China, the hashrate was reduced to 20%.

As a result, the mining pools in other parts of the world benefited and the US seems to be the biggest winner. The founder of Digital Currency Group Barry Silbert announced that the BTC mining pool Foundry managed to get to the 5^th position with a total hash rate of 7.6%.

Source: https://www.dcforecasts.com/bitcoin-news/bitmain-founder-warned-of-possible-threats-for-bitcoin-in-the-future/