China Bitcoin mining ban could send crypto prices soaring

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China bitcoin
Chinese Bitcoin investor, Chandler Guo, at a Bitcoin mining farm in Guangdong (Image: Twitter).

Following ICO bans and crypto exchange shut-downs the Chinese Government is continuing to view Bitcoin and other cryptocurrencies with cynicism – now proposing an total ban on Bitcoin mining.

China’s National Development and Reform Commission has just released a revised list of industries it proposes to encourage, restrict or eliminate.

Cryptocurrency mining appears on the list among activities the commission believes should be ‘phased out’.

The list has been released for public consultation, which ends on May 7.

China Bitcoin mining ban to bring FUD or a price frenzy?

While the news of Bitcoin crackdowns in the most populated country on earth is usually a catalyst for fear, uncertainty and doubt across crypto markets, many analysts believe a full-scale Bitcoin mining ban in China could actually be good news.

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“If this ban does end up happening it’s more likely to push BTC prices up than down,” says eToro Senior Market Analyst, Mati Greenspan.

China Bitcoin
Mati Greenspan is eToro’s Senior Market Analyst (Image: Twitter).

“The loss of cheap Chinese electricity would raise the mining cost, which is net positive on price.

“It would also serve to kill the FUD that Bitcoin mining is centralised.”

It’s estimated Chinese miners account for around 70% of global Bitcoin mining output.