The latest crackdown on cryptocurrency mining in China bumped trading prices of nearly all popular cryptocurrencies like Bitcoin, Ethereum, etc. Concerns were taken upon whether the Chinese crackdown will have a long-term negative effect on these coins. Nevertheless, currently, the prices of popular coins emerge not to be falling by much, relatively going up. But this visible stability cannot be thought of as assured. Since, when it comes to cryptocurrency prices, massive dips and unpredictability have become the standard.
So, what if China, what if China completely bans crypto mining? Or, other countries, additional the crackdown on crypto mining activities? Experts are of the perspective that even the stringent of the Chinese crackdown on crypto mining may have a positive effect on Bitcoin in the long run. Although, there might be some effects on the cryptocurrency trade in the near future.
Impact in the near term
There will be a crawl to move bases of mining, says Abhay Chebbi, Pro-Chancellor at Alliance University and an expert in Finance. The impoverished governments will be anxious to welcome mining on their soil in the expectation that they can take a part of the revenue arising from Bitcoin trading and capitalize on the IT infrastructure built-in aid of mining to captivate IT jobs in the future.
In the near- to medium-term, the value of Bitcoin will stabilize when the cryptocurrency world finds new bases to perform mining and modify to the new quantum of cryptocurrency mined (probably less than the prior crackdown extent). Bitcoin’s future in the long run although will not hinge on the current Chinese crackdown. The supports of Bitcoin have a libertarian worldview where the money is defended from the scrutinizing eyes of governments and their Central Banks. The cryptocurrency loyalists, consequently, will not be shaken by the short setback. They will carry on to stand by Bitcoin and other cryptocurrencies on a philosophical basis.