China ban could be huge ‘risk reduction moment’ for Bitcoin
Great American Mining co-founder Marty Bent has opined that Chinese mining giant Bitmain moving its manufacturing operations from China to other countries would be “extremely bullish” for the largest cryptocurrency.
Bent believes it would be an important “risk reduction moment” for the largest cryptocurrency.
Kevin Zhang, vice president of business development at Foundry Service, has tweeted that he expects the lion’s share of Bitmain’s business production to move to Malaysia and Indonesia amid China’s ramped-up clampdown on the cryptocurrency mining sector.
He believes this change would have “serious implications” regarding logistics costs and the manufacturing process:
Losing loyal domestic buyers/resellers that will have to reincorporate abroad, increased logistics costs, potential quality issues, more friction with Chinese management, and outsourced manufacturing.
As reported by U.Today, retired US Senator Pat Toomey and Senate hopeful Blake Masters recently urged the government to counter China’s hostility to Bitcoin by adopting the benchmark cryptocurrency.
The U.S. has already emerged as a hub for cryptocurrency mining, with states like Florida, Texas, and Wyoming actively supporting the cryptocurrency industry.
Another buying opportunity?
While news of China’s most severe cryptocurrency crackdown initially blew the market up, Bitcoin managed to recover over the weekend.
Fundstrat’s Will McEvoy has determined that the past Bitcoin bans presented great buying opportunities for investors.
Those who bought the largest cryptocurrency on the day China initially banned financial institutions from Bitcoin transactions are believed to be up 4.266% so far.
