China’s crackdown on bitcoin mining is “great news” for crypto, according to the CEO of Blockchain.com

Blockchain.com Co-Founder and CEO Peter Smith said China’s crackdown on Bitcoin mining is of great benefit to the crypto industry and called it “great news.”

Peter Smith, CEO of Blockchain.com, speaks during the Web Summit technology conference in Lisbon, Portugal on November 6, 2018 | Getty Images

Talk to Yahoo Finance, Smith noted that as miners move to other regions like the US and Europe, mining will become more decentralized.

Over 80% of the world’s bitcoin mining takes place in China, and the sector has been severely impacted after the crackdown.

“I think this is really great news for the Bitcoin ecosystem. You will see the diversification of mining activities around the world. We have seen this trend over the past two years as large mines have been built in Europe, the US and a host of other locations, and that trend is now accelerating, “he said.

Smith said more mining operations will be relocated overseas in the next few years, dispelling concerns about centralization in China. He noted that if the miners reduce their bitcoin holdings and relocate, the entire crypto sector will have great success.

Most mining activities have used clean energy sources nguồn

Concerns about Bitcoin mining also arise from the debate about the power consumption of the asset. However, according to Smith, all large mining operations use clean energy sources. He believes that most miners will also report their energy sources in the future.

Blockchain.com CEO said it was too early to determine the environmental, social and governance (ESG) impact of China’s raid on the mining industry.

According to Chris Zhu, owner of Chinese mining company INBTC, about 20% of the country’s miners will move after June 20.

Amid the rampant mining crackdown, Bitcoin price fell below $ 30,000 at times. However, according to TradingView, the asset is trading at $ 32,600 at press time.

In addition to price, the bitcoin mining crackdown in China has reduced hashrate by 27% in the past 30 days to 131.0 EH / s from a high of 166.0 EH / s, according to Blockchain.com.

peace

According to Finbold

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