China Mining Ban Is Long Term Healthy for Crypto Market

In short, China's obsession about controlling every aspect of currency and money making in China is going to clamp down on mining using the convenient story angle that controlling mining is about controlling energy and green sustainability.

In my opinion, Chinese regulators are going after mining companies that are skirting the money laundering laws and using mining as a way of funding ventures and organizations that are considered a threat to the state. This is a common Chinese ploy. They have no problem with things like personal ventures and companies that make money for the state, but if small groups are using this technology to generate wealth that they cannot control or keep track of, CCP is going after them hard. This is just part of the paranoid mentality of the Chinese leadership.

For the record, I don't think all of the mining is going to get shut down. I do think that you are already seeing capitulation from some mining and exchange groups, because these groups have been on the radar before and they know they are being hunted down. That is why you are seeing some heavy selling from some groups.

In the longer term, this will decentralise a lot of computing power and exchange liquidity that is trapped in China and influenced by groups in China. This is, long term, better for the global decentralisation of Bitcoin.

The market is overreacting, but there are large players using this news as a way to really get in on some cheap bitcoin, you can bet on it. In the end, we don't need China in order to have bitcoin. In the end, China is going to find itself fighting a losing battle against its own people. Day by day, China loses integrity and trust of its people. No matter which way they fight it -- by allowing innovation or by cracking down on it, the state will get weakened.

Sit back and enjoy the ride, and scoop up some cheap bitcoin, boys!