Chinese Bitcoin Miners Return And BTC HashRate Increases: Report

The Chinese Bitcoin miners return back on scene and we can see that the BTC hashrate is increasing as well so let’s read more in our latest Bitcoin news today.

China moved to ban BTC mining earlier in 2021 and it looks like the miners that fled the scene are now back. Reports say that some of the Chinese bitcoin miners return with their operations in the USA, Russia and Kazakhstan and the relocation process is enhancing. According to a Forbes piece:

“Bitcoin’s hashrate has now recovered roughly 85% from its low point following China’s ban earlier this summer, demonstrating the excessive volatility created by the crackdown. For example, the network saw its largest downward adjustment ever, 28%, in July, when hashrate was at its lowest for 2021 at 84.79 million terahashes (TH/s).”

The author goes on to state that the upswing in hashrate is not the sole result of Chinese miners coming online but they could also be driven by the US-based  miners bringing some new rigs online. After tolerating BTC for a decade, the Chinese governemnt was hackign away at its BTC and crypto industry for af ew years and it is no secret that the CCP loves to be in control so decdnrtlaized currency is viewed as a threat to the control. BTC mining and crypot development is a hot industry and most people around the world are usign crypot as money. In areas where the local fiat currency is not reliable, cryptos are coming to the rescue.

The recent BTC mining ban in China is evidence that the government’s desire to control BTC is far bigger than the ability to control the world’s decentralized money and this could become more important as the CCP faces a flagging economy and a high inflation rate. After watching how the 1998 Asian Financial took the “asian Tigers” down in the same fashion as the CCP came to prevent the Western money masters from doing the same thing to their nation. This is seen as the manipulation of a currency but at the tiem it made a lot more sense. The Chinese didn’t use a firm peg but the PbOC intervened in the market to keep the Yuan at a level which thinks Bejing makes sense for about 20 years.

There’s one big problem however as any currency which is pegged will have to deal with inflation which happens in the currency that is used at the base for the peg. Since the USD inflation is hetting hotter, the move that Beijing made two decades ago is not looking really good for anyone anymore. For China, unless inflation subsides, the CCP will be facing a lot more problems as it has only been moderately sucessful in lifting the country from poverty.

Source: https://www.dcforecasts.com/bitcoin-news/chinese-bitcoin-miners-return-and-btc-hashrate-increases-report/