The shock of China’s Bitcoin mining industry may have unexpected effects on BTC prices-analyst

China’s fight against Bitcoin (Bitcoin) An analyst stated that mining may have unexpected benefits for BTC price trends.

in a tweet On June 18, Charles Edwards, the CEO of the investment company Capriole, argued that the flight of Chinese miners had lowered the potential price floor of Bitcoin.

Don’t trust China’s FUD

as a Reorganization Seeing the redistribution of Bitcoin’s computing power from China, Bitcoin’s electricity cost-the total cost of keeping the network running-is falling.

As Edwards pointed out, this “bitcoin production cost” rarely crosses the spot price. The indicator itself has become lower, thus opening the possibility of another price drop, although it has been accompanied by a bull market in the past.

“Don’t believe it: China’s mining industry is bad for Bitcoin,” he commented on the accompanying Bitcoin production cost chart.

“Why? It reduces the cost of electricity for Bitcoin, the bottom line of Bitcoin’s historical price. This is a price that Bitcoin has almost never fallen below, and it has been falling.”

Bitcoin production cost and BTC/USD chart.Source: Charles Edwards/Twitter

From the perspective of historical performance, the similarities with 2017 are obvious. In that year, Bitcoin reached two local peaks, with a significant retracement in between. The event also witnessed the spot price falling below the cap of production costs.

“Bitcoin Trouble”

As Cointelegraph Report, Experienced Bitcoiners complain about the changes brought about by the changes in China’s mining industry, which is usually completely negative.

They pointed out that Bitcoin does not depend on Chinese miners, and Redistribution As the network seeks more effective ways to expand, hashing activities will naturally follow.

related: Mayor of Miami Provides Clean City Nuclear Power to Chinese Bitcoin Miners

“China’s suppression of the mining industry is a tragedy for China, a nuisance for Bitcoin, and a windfall for Bitcoin miners in North America,” MicroStrategy CEO Michael Saylor, to sum up Thursday.

He is responding news The mining company Bitfarms will soon be listed on the Nasdaq, thus becoming the largest listed miner in North America. According to reports, its activities will use 99% of renewable energy.