TL;DR Breakdown
- Michael Saylor lashes out at China’s crackdown on Bitcoin miners.
- Market prices continue to fluctuate.
- The move by China opens opportunities for other countries.
Michael Saylor argued that China had made a grave mistake by cracking down on BTC miners and ousting them out of its borders.
Dwindling prices and market instability – The Chinese Effect
China intensified its efforts to deplete the cryptocurrency mining space this year. The Asian giants cracked down on BTC miners and demanded a halting of operations immediately, citing increasing environmental concerns.
In an interview granted with Bloomberg, the famous Bitcoin bull and CEO of MicroStrategy expressed his disappointment at China’s crackdown on Bitcoin miners.
Michael Saylor expressed his thoughts and concerns about this worrying scenario and attributed the recent market downturn and instability to the liquidation of mining assets and positions by underfire Chinese miners.
China, being the world’s largest Bitcoin mining hub – with over 50% market share of BTC, made a decision to expel miners out of its borders which impacted the digital asset’s network. Saylor discussed the immediate effects of the move on price dynamics and Bitcoin hash rate.
He further referred to China’s crackdown on Bitcoin miners as a “trillion-dollar mistake.”
Although an economy as big as Chinas’ “could deal with a trillion-dollar mistake,” Saylor considers the decision a “tragedy.”
China’s loss, a massive gain for new Investors
The recent low prices of digital assets on the market present a fantastic opportunity for new investors, including Microstrategy, to amass more Bitcoin volumes at a reduced price.
On the 21st of June, 2021, MicroStrategy Inc. announced that it had acquired more Bitcoin and now has over 105,000 BTC holdings.
“I believe that this slip-up from China will open excellent possibilities for other countries,” Saylor said.
Kazakhstan is said to become one of the largest beneficiaries of China’s crackdown on Bitcoin miners. The country has opened its borders to miners fleeing china and even has a mining farm.
The US, Canada, and other countries could also experience an influx of miners in the coming weeks and months as their regulators are open-minded and more informed about Bitcoin.
Paraguay and El Salvador are not left behind, as both countries have made affirmative moves to adopt Bitcoin.
