The Chinese government is currently considering banning and subsequently shutting down facilities. However, enthusiasts believe this is the best time to invest in crypto hardware as the market tends to perform well after bans a product. In fact, a famous saying by Fred Wilson in 2014 is now making the rounds on social media following recommendations that the Chinese government should ban crypto activities in the country.
China Could Ban Crypto Mining
The National Development and Reform
Commission (NDRC), which is ’s primary economic planning body on April
8, suggesting to the government that should be banned.
The government body looked into industries that are considered suitable for the
economy and those that should be eliminated, categorizing crypto amongst
the latter.
Read:
The eliminated industries including
are those the agency considers to be a waste of resources
and might not have a meaningful impact in the future. The fact that crypto
consumes a lot of energy has been the primary talking point amongst
media houses in , with reports of authorities seizing farms and
equipment due to abnormal electricity consumption, and thus threatening the
smooth running of power grids in the country.
If China Bans, You Invest
In 2014, Fred Wilson of Union Square
Ventures, that the lesson from the internet is that anything that
bans, invest in it. The quote has now become popular amongst
enthusiasts as they believe that despite the sanctions placed on
crypto activities in , and others would continue to perform
excellently.
Adding to their optimism was Changpeng
Zhao, the CEO of , tweeting a picture of months after the Chinese government banned ICOs in the
country in 2017. The price rallied to its all-time high within three months
of ’s ICO ban, with Zhao asking what the picture means. The statement by
Fred Wilson was quoted by another user.
With the price rallying following
the ICO ban in , it could be an indication that this is the best time to
invest in hardware. The Chinese miners would be looking
to move their operations to other favorable countries, and this could lead to
an increase in demand for the hardware. By investing in the crypto
hardware space now, investors could be able to make a profit as the market
for the gears would increase and the prices along with it.
Will bitcoin Prices Surge?
Despite the latest from ,
most of the community is optimistic that price could attempt
the $6,000 mark very soon. They believe that the entire point of crypto is to
break away from the hold of countries like and by this move, crypto could
become decentralized again.
Also Read: Mining to Save Environment
houses some of the largest rigs and farms in the world, and the enactment of the ban could see the miners move to other countries with cheaper electricity tariffs. Some analysts believe that the spread of farms would make the entire process decentralized, unlike now that the activity is heavily concentrated in .
It is yet to be seen if the government would adopt the recommendations. However, it is still an excellent time to invest in crypto equipment.
Published at Wed, 10 Apr 2019 16:12:28 +0000
