Thursday, June 17, 2021

Michael Saylor Explains Why Outright Ban of Bitcoin Mining in China Could Ignite the Most Bullish Cycle

Michael Saylor, the founder of MicroStrategy, has stated that the outright ban of Bitcoin mining in China could ignite the most bullish cycle in the crypto ecosystem.

It can be recalled that China is starting to reconsider a crackdown on Bitcoin mining and trading in the country. This came through an announcement on Friday 21st May 2021.

Read Also: Elon Musk Loses World’s Second-Richest Position after losing $3.16 Billion in A Day

The news further affected the already battered week for cryptocurrencies in the market. The week in which Bitcoin started at around $57,000 but ended in the $30,000 price region.

The statement from the Chinese Premier and State Council reads as follows:

“It is necessary to maintain the smooth operation of the stock, debt, and foreign exchange markets, severely crackdown on illegal securities activities, and severely punish illegal financial activities.

“It is necessary to strictly guard against external risk shocks, effectively respond to imported inflation, strengthen anticipation management, strengthen market supervision, and prepare response plans and policy reserves.”

Read Also: Iranian Government Licensed Bitcoin Mining Farm to Set Up In Iran

MicroStrategy Founder Thinks China Banning Bitcoin Mining Could Be Bullish

Over the past three days, Bitcoin (BTC), the largest cryptocurrency by market cap, has been changing hands below the $40,000 resistance level as no one can ascertain its next move. However, any negative or positive news can be a major influence on the price as it has been over the last couple of days.

China’s negative news has affected the positive trend of Bitcoin (BTC) and other cryptocurrencies in the market, many are of the opinion that an outright ban of Bitcoin and crypto mining in China could ignite the most bullish cycle in the crypto ecosystem.

According to the current optimism in the crypto industry, if an outright ban is placed on crypto activities in China, it could help miners in the United States gain better margins, which they could use to operate and carbon impact will no longer be a factor. It will also make the hash rate more decentralized.

Read Also: Crypto Lending Firm Sends Over $25 Million in Bitcoin (BTC) To Customers Accidentally

In corroboration with the above opinion, Michael Saylor, the founder of MicroStrategy tweeted:

“A crackdown on miners in China would radically reduce the carbon footprint of Bitcoin mining, increase the profitability of all the remaining #Bitcoin miners, reduce nagging China FUD, support progress toward our ESG goals, & drive up the value of $BTC. We should be so lucky…”

Follow us on Twitter, Facebook, Telegram, and Download Our Android App

Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

Related Articles

Latest Articles