Bitcoin is becoming an “invincible” machine in the face of intensifying Chinese repression
The People’s Bank of China (PBOC) reiterated its longstanding anti-crypto stance and warned institutions not to offer services to crypto-related companies.
PNOC has shut the door a Beijing-based company that provides software services for virtual currency transactions and affirms that any company under it should not be involved in such transactions.
Both the PBOC and the Chinese government stepped up their anti-crypto rhetoric in May, adding to declining pressure on cryptocurrencies.
China’s crypto restrictions have dominated the headlines since mid-May and influenced market sentiment.
The National Internet Finance Association of China, China Bankers Association, and China Clearing and Clearing Association released a notice on May 18 confirming the ban on crypto services and ICO services in 2013 and 2017.
Bitcoin – the invincible machine
China’s crackdown on Bitcoin mining continues to face strong backlash in the crypto ecosystem. Nick Spanos, one of the earliest BTC exchange operators and co-founder of the Zap Protocol, says the raid only proves that Bitcoin is an “invincible” machine unless the world’s second largest economy can crush, devalue, and manipulate Bitcoin.
Spanos notes that crackdowns are becoming scarcer as there are fewer miners in relation to the volume of transactions, and highlights the increase in miners’ profitability while mining difficulties continue to decrease.
“Bitcoin’s algorithm adapts roughly every two weeks so that a block of transactions can be broken down every 10 minutes. This makes Bitcoin mining easier and more profitable. It’s a recipe for getting more miners back. “
Spanos said miners pulling out of China will look for a foothold in neighboring countries like Kazakhstan, Iran and Russia. Recently, one of the largest mining companies in China announced that it would leave the country and split its mining activities between the United Arab Emirates, Canada and the United States of America, Kazakhstan and Iceland.
Spanos noted that the price of bitcoin keeps rising as regulatory failings are “unearthed” by the community.
According to Cointelegraph