China has shorted the crypto mining market after being a sound support pillar for it for too long. Mining is a necessary evil that keeps the wheels of cryptocurrencies and their blockchains running. The processing power mining provides in terms of the hash rate determines how fast and efficient the proof of payments or transactions would be on a blockchain. The recent practices of China anchored towards the exile of Bitcoin and other crypto miners from its land have led to a massive shortage of the hash rate for Bitcoin and other cryptocurrencies.
The crackdown resulted in the hash rates for Bitcoin steeping too low that the system was put out of sync for some time, being long enough to initiate a market-level crash. Still, it didn’t urge China to rethink its decision made against the crypto miners’ exile and tighten the policies of the crypto mining crackdown.
China has Pushed a Thriving Market to its Demise
Most of the large or organized miners who used to mine Bitcoin and other cryptocurrencies at an elevated level were the first to respond to this unwelcoming scenario and left the country by moving their equipment for mining to some other location. But the market was getting edgier, and it was no longer suitable for even the small-sized miners, so they ended up trading their mining equipment on second-hand selling sites for others to buy and left the country for good.
Recently the hydropower plants that were powering these sites are also seen listed among many items on second-hand selling sites in China as these don’t have any kind of use as the miners or people who did draw power from it consistently are no longer around to keep them operating. It is definitely a spectacle of stubbornness and not succumbing to finding an ideal solution for this problem on China’s part. Who knows what will be available for selling next?