China’s Bitcoin Mining Crackdown ‘Great Development’ for BTC – Facebook’s David Marcus
The Chinese government cracking down on bitcoin mining, according to David Marcus, head of Facebook Financial (F2) and in charge of crypto project Diem, formerly Libra, is a “wonderful development” for the cryptocurrency. Many in the crypto community agree with him.
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Facebook’s Executive Believes China’s Bitcoin Mining Crackdown Is a Good Development
David Marcus, head of F2 (Facebook Financial), has shared his view on the Chinese government cracking down on bitcoin mining. F2 includes Facebook Pay, Novi, and all payments and financial services efforts by the social media giant. Marcus is also a co-creator and board member of the crypto project Diem, formerly Libra.
He tweeted Monday: “How is more bitcoin mining power moving to the United States and the West a bad thing? IMO China cracking down on mining is a great development for BTC.”
How is more #Bitcoin mining power moving to the ?? and the West a bad thing? IMO China cracking down on mining is a great development for BTC.
— David Marcus (@davidmarcus) June 21, 2021
Many people agree with Marcus, sharing their opinions on Twitter. Several of them agree that the move may seem bearish in the short term but is good for bitcoin in the long run.
The CEO of cryptocurrency exchange Luno, Marcus Swanepoel, commented: “Familiar pattern for anything Bitcoin: 1 potential issue identified (AML, scaling, Chinese miner concentration, etc), 2 solutions created (Chainalysis, lightening, Chinese ban mining), 3 risk mitigation incorrectly interpreted as increase in risk, 4 eventually penny drops = [Rocket emoji].”
Sharan Nair, chief business officer of Indian crypto exchange Coinswitch Kuber, opined:
I totally love it how every supposed move to bring down bitcoin actually works in its favor. Perhaps what doesn’t kill you makes you stronger has never been more truer.
Following the Chinese government shutting down bitcoin mining farms, miners are reportedly moving their operations out of China. Castle Island Ventures partner Nic Carter was quoted by CNBC as saying:
Chinese miners or miners that were domiciled in China are looking to Central Asia, Eastern Europe, the U.S. and Northern Europe … Every Western mining host I know has had their phones ringing off the hook.
Brandon Arvanaghi, a bitcoin mining engineer and former Gemini security engineer, said: “You are going to see a dramatic shift over the next few months.” He added that Texas could be one of the U.S. states where bitcoin miners will move to. “We have governors like Greg Abbott in Texas who are promoting mining. It is going to become a real industry in the United States, which is going to be incredible,” he opined.
Florida is another U.S. state that may draw crypto miners. Miami Mayor Francis Suarez is trying to attract miners to his city, which he aims to build into a bitcoin hub. Noting that Florida has a great abundance of nuclear power, the pro-bitcoin mayor stated, “The fact that we have nuclear power means that it’s very inexpensive power.”
