- China’s bitcoin ban shows that crypto works, says crypto engineer Brandon Arvanaghi.
- Arvanaghi is a former Gemini crypto exchange security engineer.
- Also, Arvanaghi predicts miners will move from China to the USA.
To clarify, China has recently ramped up crackdowns on crypto operations in the country. As regulatory measures tighten in the Asian nation, there has been a marked decrease in crypto prices. In turn, his has led many to believe that China is having a bearish effect on the market. However, the Bitcoin mining engineer says China’s crypto ban is good news.
Arvanaghi is a former security engineer at the Gemini crypto exchange. As an industry expert, he compared China’s crypto ban to its previous bans on Facebook and Google. The crypto expert went on to call getting banned in China a “rite of passage for free tech.” He even stated that the ban is proof that Bitcoin works. Adding that the top crypto is “making nations shiver in their boots.”
As such, Arvanaghi sees the clampdown as extremely bullish for Bitcoin in the medium and long run. The engineer predicts that miners will flock from the hostile Asian country into more tolerant countries like the US. A situation that could lead to nations having to pick a side in the war for crypto.
In fact, Arvanaghi mentioned Texas as a potential crypto hub. He cited the cheap cost of electricity and the presence of a pro-crypto state governor, Greg Abbott. These could all be reasons why crypto operations could move and succeed in Texas, for instance. Arvanaghi went on to note,
Bitcoin is the greatest store of value in the history of planet Earth; nothing is even comparable. We are going to start valuing our wealth in terms of Bitcoin, and the volatility is the tax that we pay for being on the right side of this trade.
In the meantime, China is reported to control about 65% of bitcoin’s hash rate. As such, the clampdown has had a negative impact on the top crypto’s hash rate. Presently, China has shut down mining in the top four mining provinces leading to a 30% decline in hash rate. Similarly, the price of mining components like GPUs has gone down significantly. It is yet unclear whether miners will opt to migrate or simply give up.