In an interview with media company Bloomberg last July 1, CEO and founder of the crypto investment company Galaxy Digital, Mike Novogratz, said that Bitcoin (BTC) will still survive despite the undermining and various bans happening in China. He also mentioned that the migration of BTC mining outside China could be ‘a big net positive for the ecosystem’.
Novogratz added that despite the price crashes BTC endured in the past weeks, it continues to exist, serving as a successful test for the crypto ecosystem as a whole.
He also mentioned that despite BTC’s 65% price drop from its all-time high of $65,000 last April, Galaxy Digital still managed to safely get through the situation even without a plunge protection team.
Regarding the issue of China’s ban, the head of financial firm Facebook Financial (F2) David Marcus stated in a Twitter post last June 21 that the crackdown of BTC mining in China is a great development for the large cryptocurrency. In his tweet, he mentioned how it’s not a bad thing if the mining power is moving towards the West rather than in Asia.
After the Chinese government shut down mining facilities in China, Consumer News and Business Channel (CNBC) reported that the majority of the Beijing miners are planning to move to Texas. Compared to China who is driving out its Bitcoin miners, the local authorities of Texas like Governor Greg Abbott are actively promoting mining in their city. Texas is deemed an ideal crypto mining destination because of its abundance in solar and wind power, unregularized market and a more positive stance with crypto.
Last June 22, BTC dropped below $30,000 largely due to Chinese regulations prohibiting crypto mining farms from operating. China comprises around 65% to 75% of Bitcoin mining activity in the world as shown by the data from news site CNBC. Majority of crypto mining farms operated in four Chinese provinces namely, Xinjiang, Inner Mongolia, Sichuan and Yunnan but are now either closing or moving to other countries to continue operations.
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