Bitcoin Miners are Escaping China
It started with rumors that miners in Sichuan had gone offline after the province limited energy-intensive industrial activities, such as Bitcoin mining.
Then came a joint statement by three of China’s top financial self-regulatory organizations reminding the public of the country’s 2017 ban on cryptoassets.
Then it was reported th at, for the first time, the Chinese State Council, headed by President Xi Jinping’s top economic advisor, was cracking down on mining.
And to top things off, last Sunday the Chinese state-run news agency Xinhua published a negative article on cryptoassets, denouncing their risks relative to “traditional investment tools”.
While there have been multiple factors contributing to this sell-off, one thing is undeniable: there is something brewing in China. Whatever it is, this series of events has led market participants to fear for Bitcoin’s future, especially as it relates to mining.
The great thing about Bitcoin’s financial transparency is that it enables us to evaluate how miners are responding to all of this, in real-time. But before we delve into the actual mining data, it’s important to do a quick recap of how miners interact with Bitcoin and how we can measure that.
