- China is not afraid of halving
- Cheap electricity will help
- Chinese digital currency on the way
- Coronavirus advantage
Bitcoin halving will hit everyone, but Chinese miners will get off with a slight fright
Chinese cryptocurrency the industry will outlive halving better
The main competitive advantage is provided by cheap electricity
China will continue to prepare for the launch of digital currency
Chinese miners will survive the block reward cut better than others, says Matthew Graham, CEO of Sino Global Capital.
The coronavirus pandemic destroyed the usual way of life of many people and put them on the brink of survival whole industry. Until it is not clear how we will be from Total of this get out, and than everything will end.
China is not afraid of halving
There are many uncertainties in cryptocurrency sphere. Status bitcoin as a protective asset was in doubt, as well as its ability to play the role of a stabilizing element in the economy. but on this the industry’s problems don’t end there. Halving Ahead, An Event That Causes Many Miners To Wake Up In Cold Sweat At Night.
The upcoming block reward cut will reduce miners’ revenues in two times – by about 6.7 million dollars in a day. it associated with themes, what for each mined block they are will be get 6.25 BTC instead of 12.5 BTC.
Meanwhile Matthew Graham, CEO of Sino Global Capital, considers, that this event will have a lesser impact on Chinese miners and will be more painful for those who located in other countries.
More Togo, according to him, the Chinese industry will also emerge from the current coronavirus crisis with minimal losses.
Cheap electricity will help
Graham named the series reasons, which, according to him opinion, give Chinese cryptominers an advantage over the rest. Firstly, it is cheap electricity, which gives China an advantage over other countries.
Secondly, China’s optimistic attitude towards the upcoming halving and the development of cryptocurrency in general also give the industry the desired vector of movement. A cautious optimistic mood prevails among Chinese miners, Graham says.
Chinese digital currency on the way
This Chinese project is at a high stage of readiness. Wuhan coronavirus outbreak prompts government to delay its launch, but it is still relevant.
Preparing to launch digital centralized electronic payment system is. Despite for the lack of clear deadlines for implementation, development of our own digital currency remains among the priority projects for China, said Graham.
Delays and deferrals were associated with the COVID-19 epidemic, however Now, when China managed to survive the acute phase and enter the recovery phase, this project is most likely, will be resumes at priority level.
Last week from Wuhan city, in which for the first time the COVID-19 virus was detected, strict quarantine was lifted. For 76 days, the city was paralyzed, and its communication with the outside world was practically interrupted. The city is now coming back to life and restoring economic activity.
However, in Europe and USA the epidemic is still in full swing, wherein number deaths and new infections continue to rise. Western economies will not have time to recover by moment halvinga. The cryptocurrency industry stands alone, but still it does not develop in a vacuum. Previously edition BeInCrypto already reported on Tom, that the mining farm is preparing for staff reductions due to epidemics. Therefore, unfavorable economic conditions will affect the financial health of miners and weaken their position before halving..
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