During a recent interview with Bloomberg, one of the most enthusiastic and investor in Bitcoin , Michael Saylor , spoke about the short-term negative effects of the recent Chinese crackdown on Bitcoin mining.
While acknowledging the low hash rate and falling prices, Saylor believes that this mistake by the Asian country will provide an excellent opportunity for others.
The world’s most populous country intensified its crackdown on cryptocurrency this year.
More specifically, the Asian superpower has hunted down Bitcoin miners and ordered them to cease their operations, citing environmental issues.
Being the country with the largest share of Bitcoin mining, these actions affected the Bitcoin network instantly.
Not only did prices begin to fall, but the retail rate fell to its lowest level in several months.
We have indicated in previous articles on Arab Bitcoin that some miners are relocating to other countries such as Kazakhstan and the United States, but the process will take time, which is why the scale failed to recover while waiting for the next difficulty adjustment.
Michael Saylor touched on this troubling topic while speaking to Bloomberg, attributing the drop in prices to forcing Chinese miners to liquidate their positions.
While speaking and commenting on China’s decision to fire miners, Saylor called it a “trillion dollar mistake” for the state, which could actually provide opportunities for others. He stated:
China had a 50% stake in bitcoin mining, and they were generating $10 billion annually and business growth of 100% year on year.
After that, the government cracked down on it and drove the entire industry out of China.
I think given the growth rate of Bitcoin, that would be a trillion dollar mistake for China.
Although he admitted that a powerful nation like China could afford to make a trillion-dollar mistake, he still classifies the move as a tragedy.
However, the lower prices are a great opportunity for Western investors, including the company he runs, to accumulate more bitcoin at a discount.
Saylor believes that North American bitcoin miners will also benefit from this because their cost is the same, but they will make 50% more profit or 75% more for a long time.