China’s crackdown on Bitcoin (BTC) mining and cryptocurrency trading recently became a primary driver for the red candlesticks on crypto market charts. But one Bitcoin mining engineer believes China’s ban on crypto is “fantastic news.”
Brandon Arvanaghi, a former security engineer at crypto exchange Gemini, compared China’s harsh stance against Bitcoin with the country’s ban on Facebook and Google. Arvanaghi called getting banned in China a rite of passage for free technology and stressed that the crackdown means that Bitcoin is working, not that it’s failing. “It’s making nations shiver in their boots,” he added.
He said that nations are now picking sides, with China is responding to Bitcoin much like the country did to major Western tech firms, which is incredibly bullish for Bitcoin for the long and medium-term. Miners are currently flowing out of China — where a phone call is enough to shut down an entire mining plant — and into the United States.
BTC.com — a major crypto mining pool that is operated by BIT Mining and owned by the NYSE-listed Chinese lottery service provider 500.com — has announced the successful relocation of its first batch of mining machines to Kazakhstan.
BTC.com was founded by Jihan Wu and was operated by Bitmain and Bitdeer until its acquisition by 500.com this February. As of the time of writing, the pool is the world's fifth-largest, validating 10.4% of blocks on the Bitcoin (BTC) blockchain.
The relocation comes after the company was notified by the state grid in western Sichuan province that the power supply serving one of its local data centers would be suspended imminently. In its announcement yesterday, BIT Mining stated:
“On June 19, 2021, the Company's indirectly held subsidiary, Ganzi Changhe Hydropower Consumption Service Co. Ltd [...] received notice [...] from State Grid Sichuan Ganzi Electric Power Co., Ltd. [...] informing Ganzi Changhe Data Center, that its power supply would be suspended, effective 9:00pm Beijing time, June 19, 2021. Ganzi Changhe Data Center has since suspended its operations. Data centers in Sichuan, including the Ganzi Changhe Data Center, contributed approximately 3% of the Company's total revenues in the month of May 2021.”
Dogecoin (DOGE), Elon Musk's pet favorite cryptocurrency, has shed tens of billions of dollars in value since he publicly plugged it on mainstream TV. As sources noted this week, the meme-based altcoin's market cap is now $69 billion down versus where it was when the Tesla and SpaceX CEO hosted Saturday Night Live.
Dogecoin: 6 weeks, 70% losses
Dogecoin saw a major rally in early May, and its height had a market cap of $95 billion. When Musk took to the airwaves on May 8, contrary to expectations, DOGE/USD then began a precipitous fall which continues to this day.
At the time of writing, Dogecoin’s market cap is just $26.5 billion — 72% lower. It trades at $0.20, a far cry from its $0.73 all-time highs.
This Daily Dose was brought to you by Cointelegraph.