China’s crackdown on crypto mining beneficial for crypto

The price of Bitcoin (BTC-USD) saw a drop to below $30,000 earlier this week- the lowest it has gone this year- after China announced an increase in its efforts to restrict the mining of cryptocurrency. Bitcoin has since recovered, currently at a level just above $32,000.

Although China’s announcement caused a temporary uneasiness in the crypto market, experts say that this crackdown will serve as beneficial for crypto in the long run.

Peter Smith. Blockchain.com co-founder and CEO predicts that the crackdown will yield a net positive for crypto over the course of the next three or four years as mining firms will sell off their bitcoin and take their operations overseas.

In fact, there are Chinese mining firms that have already started planning the shift abroad. These companies are eyeing countries ranging from the U.S to Kazakhstan. Approximately 10% to 20% of miners in China have already initiated their move, according to Chris Zhu, owner of the Chinese mining service platform INBTC.