China Looking to Ban Crypto Mining

By | Apr 09, 2019

China Looking to Ban Crypto Mining

There are reports out today China wants to ban cryptocurrency mining. The open question is what does this mean for the price of bitcoin. Spoiler alert: I don’t know. But I think it’s worth examining, nonetheless.

When there is a drought, crop prices soar. But guess what happens to cattle prices when there is a rogue “pink-slime” scare. Whether there’s a drought or pink slime, in theory, you reduce supply. Prices jump in the former; but collapse on the latter. Why. Well, because regardless of the supply function emanating from the meat scare, there’s another effect which is more profound: demand plummets as consumers say: “I’ll have the tuna.”

Now what, if anything, does this mean for btc mining in China. Again, we don’t know for sure. I did see reports that basically said “crypto ban…another crypto negative.” I dunno. Are you sure. The China stance is laughable, of course, because it’s couched in the “too much energy” vein, when everyone knows it really is a case of “Do not compete with the yuan”, that’s driving the discussion. Could crypto be banned in the US? Nah. I mean, it could. But come now, in order for there to be a ban Congress would need to have some kind of clue on the topic. And I don’t really think anyone in DC is remotely interested in crypto mining at present.

2019-04-10T15:40:50-05:00April 9th, 2019|

Stay Informed

Daily Newsletter

About the Author: