{"id":463972,"date":"2022-06-16T22:27:20","date_gmt":"2022-06-16T19:27:20","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/resistance-is-futile-3-reasons-why-bitcoin-mining-will-never-go-away\/"},"modified":"2022-06-16T22:27:20","modified_gmt":"2022-06-16T19:27:20","slug":"resistance-is-futile-3-reasons-why-bitcoin-mining-will-never-go-away","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/resistance-is-futile-3-reasons-why-bitcoin-mining-will-never-go-away\/","title":{"rendered":"# Resistance is futile! 3 reasons why Bitcoin mining will never go away"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3b75fb377f2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3b75fb377f2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/resistance-is-futile-3-reasons-why-bitcoin-mining-will-never-go-away\/#%E2%80%9D_Resistance_is_futile_3_reasons_why_Bitcoin_mining_will_never_go_away_%E2%80%9C\" >&#8221; Resistance is futile! 3 reasons why Bitcoin mining will never go away &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/resistance-is-futile-3-reasons-why-bitcoin-mining-will-never-go-away\/#Chinas_ban_was_Bitcoins_stress_test\" >China\u2019s ban was Bitcoin\u2019s stress test<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/resistance-is-futile-3-reasons-why-bitcoin-mining-will-never-go-away\/#The_ban_created_a_decentralized_black_market\" >The ban created a decentralized black market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/resistance-is-futile-3-reasons-why-bitcoin-mining-will-never-go-away\/#International_competition_for_miners_rises\" >International competition for miners rises<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/resistance-is-futile-3-reasons-why-bitcoin-mining-will-never-go-away\/#The_takeaway_for_world_governments\" >The takeaway for world governments<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Resistance_is_futile_3_reasons_why_Bitcoin_mining_will_never_go_away_%E2%80%9C\"><\/span>&#8221; Resistance is futile! 3 reasons why Bitcoin mining will never go away &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>In the summer of 2021, the Chinese government banned Bitcoin (BTC) mining and cited the typical concerns of harmful environmental effects and money laundering. Now, the Chinese government is working toward establishing its own digital yuan currency. This raises the question as to whether the original reasoning was merely a Trojan horse.<\/p>\n<p>This ban could easily have been a huge blow to Bitcoin\u2019s momentum. After all, close to 75% of all Bitcoin mining had been conducted in China by late 2019, according to Cambridge Alternative Finance Benchmarks. If the network teetered under the weight of China\u2019s nationwide ban, other governments might have begun to think that Bitcoin could be defeated after all.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chinas_ban_was_Bitcoins_stress_test\"><\/span>China\u2019s ban was Bitcoin\u2019s stress test<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For a brief period, the ban worked as intended \u2014 by the end of June 2021, the Bitcoin network\u2019s hash rate had <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nasdaq.com\/articles\/china-emerges-as-second-largest-bitcoin-mining-hub-despite-ban\">dropped<\/a> to 57.47 exahashes per second (EH\/s), down by a few multiples. However, the hash rate rebounded to 193.64 EH\/s by December 2021 and by February 2022, it reached an all-time high of 248.11 EH\/s. <\/p>\n<p>The entire ordeal was a test that Bitcoin passed with flying colors: Banning Bitcoin mining proved as effective as the Prohibition era was at killing drinking culture in the United States.<\/p>\n<p>In early 2022, the obvious explanation for the hash rate recovery was that miners who had set up shop in China had simply fled to the Western Hemisphere. There was plenty of evidence that seemed to support this hypothesis \u2014 primarily that the United States\u2019 share of the global hash rate exploded from 4.1% in late 2019 to 35.4% in August 2021.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/7c8881c6-11f6-472b-b8ca-0d252af5213c.png\"><figcaption style=\"text-align: center;\"><em>Share of global Bitcoin hashrate. Source: University of Cambridge, Reuters<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"The_ban_created_a_decentralized_black_market\"><\/span>The ban created a decentralized black market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>However, the so-called \u201cgreat migration\u201d may not have been the only unintended consequence of China\u2019s ban. As of May 2022, miners in China <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nasdaq.com\/articles\/china-emerges-as-second-largest-bitcoin-mining-hub-despite-ban\">accounted<\/a> for 22% of the global hash rate \u2014 a figure that is not as dominant as before, but no small slice of the pie, either. <\/p>\n<p>As the Cambridge Centre for Alternative Finance reports:<\/p>\n<blockquote><p> \u201cIt is probable that a non-trivial share of Chinese miners quickly adapted to the new circumstances and continued operating covertly while hiding their tracks using foreign proxy services to deflect attention and scrutiny.\u201d<\/p><\/blockquote>\n<p>Indeed, it\u2019s likely that there is now a massive black market of Bitcoin mining in China.<\/p>\n<p>Try as they might, one of the most authoritarian regimes on the planet cannot prevent its citizens from mining Bitcoin. In economic terms, the potential benefits to the China-based miners outweigh the costs associated with getting caught red-handed. <\/p>\n<p>Despite the concern and skepticism that \u201cexperts\u201d broadcast about Bitcoin, miners in China value the activity so much that they\u2019re willing to risk breaking the law to get their hands on the future global reserve asset.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"International_competition_for_miners_rises\"><\/span>International competition for miners rises<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite China\u2019s black market surge, there is no doubt that the United States\u2019 economy benefited from China\u2019s ban. Just outside Kearney, Nebraska, a company called Compute North runs one of the United States\u2019 largest data centers for cryptocurrency mining. Around the time of China\u2019s ban, the company received a deluge of calls from operations that were trying to move their mining equipment from China into the United States. <\/p>\n<p>Compute North welcomed its new partners with open arms. \u201cWe doubled in size,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.npr.org\/2022\/02\/24\/1081252187\/bitcoin-cryptocurrency-china-us\">said<\/a> their lead technician. \u201cWe were busy nonstop for the whole summer. [&#8230;] And there\u2019s just continuing more and more demand all the time.\u201d<\/p>\n<p>Other towns, such as Rockdale, Texas, and Massena, New York, are also witnessing growth in their cryptocurrency mining ecosystems.<\/p>\n<p>All of this migration could cause a vicious cycle for China and a virtuous cycle for the United States, which means that all sorts of other Bitcoin-related opportunities shift from China to the United States as well. Lamont Black, finance professor at DePaul University, believes that the recent influx of Bitcoin mining into America could bolster the country\u2019s broader blockchain economy. <\/p>\n<p>And that logic works both ways \u2014 to the extent that Bitcoin miners are leaving China, then ancillary Bitcoin activities will <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> along with them.<\/p>\n<p>Although fleeing miners considered countries other than the United States, it seems that miners prefer America because of its relatively robust respect for property rights. One miner migrating from China said, \u201cMaybe the governments [of countries such as Russia or Kazakhstan] are not only shutting down the operation, but they also take [&#8230;] all your machines. You might lose everything, so the United States is a safe choice.\u201d <\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_takeaway_for_world_governments\"><\/span>The takeaway for world governments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This black market phenomenon should be a lesson to Western politicians: If the Chinese government can\u2019t ban Bitcoin mining out of existence, neither can you. <\/p>\n<p>As the United States forges ahead in studying the regulatory implications of the industry, traditional financial institutions are closely monitoring its movements. Retail and institutional investors are also paying close attention to the market swings as they battle inflation at home. At this point, trying to put the toothpaste back in the tube is nothing but a waste of energy. Bitcoin mining is not going away. <\/p>\n<p>The United States and other world leaders must learn from the mistakes of others so that they don\u2019t have to repeat them. China wasted its efforts so that others don\u2019t have to.<\/p>\n<p class=\"post-content__disclaimer\">Disclaimer. Cointelegraph does not endorse any content of product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.\n<\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><em>William Szamosszegi is the CEO and founder of Sazmining, the world\u2019s first clean energy Bitcoin mining platform for retail customers. He is also the host of the Sazmining podcast and as a Bitcoin evangelist, Will is committed to improving humanity\u2019s relationship with time, money and energy. Will is the recipient of Bucknell\u2019s venture grant, a finalist in SXSW\u2019s Digital Entrepreneurship Tournament, a Forbes Fellow and a regular speaker at Bitcoin mining conferences.<\/em><\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/resistance-is-futile-3-reasons-why-bitcoin-mining-will-never-go-away\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Resistance is futile! 3 reasons why Bitcoin mining will never go away &#8220; In the summer of 2021, the Chinese government banned Bitcoin (BTC) mining and cited the typical concerns of harmful environmental effects and money laundering. Now, the Chinese government is working toward establishing its own digital yuan currency. This raises the question&#8230;<\/p>\n","protected":false},"author":1,"featured_media":463973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvYzQ5ZjIyY2QtNmJkMi00YmVkLWI5N2QtMzNhOWUyMTQzYzNhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74937,74858,74894,75022,74863,99002,78717,75042,78423,74355,4973,70752,70551,73785,70934,4975],"class_list":["post-463972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-bitcoin-price","tag-bitcoin-regulation","tag-blockchain","tag-central-bank","tag-cryptocurrencies","tag-decentralized-marketplace","tag-energy-consumption","tag-mining","tag-mining-pools","tag-adoption","tag-china","tag-energy","tag-inflation","tag-markets","tag-regulation","tag-russia"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/463972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=463972"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/463972\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/463973"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=463972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=463972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=463972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}