The Independent: “Bitcoin prices are falling because of Chinese miners!”

According to the Independent, a famous UK-based media outlet, Chinese miners have been influential in the recent price declines in Bitcoin prices!

“Bitcoin prices are falling because of Chinese miners!”

Bitcoin and cryptocurrency trading was banned in China. On top of that, the Chinese government has put into operation even more prohibitive regulations on Bitcoin mining activities and Bitcoin trading.. After the more prohibitive attitude of the Chinese administration, China-based Bitcoin mining pools and platforms are having difficulty in turning the Bitcoins they produce into cash and financing their costs.

Bitcoin mining is known to be concentrated in China at 60% and above. Closing operations by Chinese miners jeopardizes the Bitcoin blockchain network in the short term. This China-based change has been effective in the recent decline in Bitcoin prices.. Another mining platform, HashCow >, announced that it has canceled the tender for the purchase of new mining hardware.

Please See: China’s Bitcoin Is stopping mining activities bad news?

The abandonment of several large Chinese mining platforms increases the monopoly power of their existing platforms. This situation inevitably creates the risk of 51 attack. If miners traded on the Bitcoin blockchain form a 51% cartel, they can manipulate Bitcoin transfers for their own benefit.

However, the long-term damage to China-based Bitcoin mining can be seen as a positive development for the Bitcoin ecosystem.. Because China’s monopoly power over Bitcoin mining has always been seen as a risk.. After the Chinese government’s decision to mine Bitcoin, mining nodes are expected to be more decentralized to the global arena in the long run.

Source