Here are the Five Facts You Need to Know about Bitcoin
Fact #1. Not a done deal.
Some widely followed bloggers give readers the impression that the ban is a sure thing. Truth be told, it’s strictly a proposal under review.
Fact #2. Not unexpected.
Chinese miners have seen the handwriting on the wall ever since Beijing imposed a trading ban in the second half of 2017.
Even back then, many miners in China figured they could be next in the government’s crosshairs. So, any large China-based mining company should have contingency plans in place to move their operations to friendlier jurisdictions.
Fact #3. The Bitcoin protocol doesn’t care.
Nowhere within the Bitcoin protocol does it stipulate that Chinese miners must have a presence in mining BTC.
Nor is the network reliant on any single entity securing the network via Proof of Work.
Quite to the contrary, Bitcoin was conceived as an open-ended system where anyone with the resources to act as a validator can do so.
Thus, even if Chinese miners must shut down, they’ll be promptly replaced by others. Moreover, the reduced competition will make mining Bitcoin more profitable for those who remain in the game.
Fact #4. Potentially good for decentralization.
A common gripe about Bitcoin is that a small number of miners in China control most of the world’s hashrate (the mining “resource”), something that could threaten the decentralization BTC is known for.
If others have a better chance to compete with the mining giants in China, that could help enhance Bitcoin’s decentralization.
Fact #5. Peanuts compared to the bear market of 2018.