The world rose up to the bad news of China’s plan to finally ban Bitcoin mining. As saddening as this appears, a senior analyst at eToro, Mati Greenspan, has said this is indeed a blessing in disguise to the cryptocurrency world.
In his statement, the eToro analyst says when there electricity is no longer cheap in the country, the price of Bitcoin will go up rather than back.
As contained in a draft list of Industrial activities China’s state planner is embarking on, the agency plans to stop mining in its bid to mount more pressure on the cryptocurrency sector.
While China is the world’s largest market for computer hardware fashioned for mining Bitcoin and some other cryptocurrencies, the decision of Shanghai to ban BTC mining may affect the country as well.
In a message on Monday by the National Development and Reform Commission (NDRC), the agency says it needs opinions on a revised list of “industries it wants to encourage, restrict or eliminate”.
As first published in 2011, the revised draft list included crypto mining and some other activities, around 450, that the agency wants to place a ban on for the fact that they were not backed by regulatory approval, and unsafe, or wasted the country’s resources, or polluted the environment.
While there is no particular date the ban would be implemented, the public has just May 7 to comment on the draft.
As contained in the country’s- managed newspaper, Securities Times, the draft list “distinctly reflects the attitude of the country’s industrial policy” towards bitcoin and the entire cryptocurrency sector.
Rejoice! the Ban is a Blessing for the Cryptocurrency Space
The possible China ban is going to be a blessing for the cryptocurrency space. According to Greenspan, “if this ban does end up happening its more likely to push BTC prices up than down”, adding that “the loss of cheap Chinese electricity would raise the mining cost, which is net positive on price.”
The ban, according to the senior cryptocurrency analyst, would also serve to kill the FUD that Bitcoin mining is centralized.