Thu, June 27, 2024 at 17:43

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some intriguing news about the global cryptocurrency mining ecosystem and its geopolitical implications.

  • 
• Annie

  • Oh, that sounds interesting!

  • What exactly happened?😊

  
• 

  Kang-hoon

  • Recently, Chinese journalist Colin Wu highlighted comments made by Wang Yang, vice president of the Hong Kong University of Science and Technology.

  • Wang criticized China's ban on cryptocurrency mining as a 'very unwise decision.'

  • 
• Annie

  • Really?

  • Why does he think it was unwise?🤔

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • According to Wang, the ban unintentionally led to a migration of Chinese cryptocurrency miners to the U.S., contributing more than $4 billion in tax revenue to the U.S. economy.

• Annie

  • Wow, that's a huge amount!

  • So, when did China ban cryptocurrency mining?

  
• 

  Kang-hoon

  • In 2021, the Chinese government banned all cryptocurrency trading and mining, citing concerns about financial stability, environmental impact, and illegal activity.

• Annie

  • I see.

  • And what happened to the miners after the ban?

  
• 

  Kang-hoon

  • The ban resulted in a massive exodus of cryptocurrency mining operations, particularly Bitcoin mining.

  • Miners moved to more crypto-friendly regions such as the United States, Kazakhstan, and Canada.

• Annie

  • So, the U.S. benefited the most from this migration?

  
• 

  Kang-hoon

  • Yes, indeed.

  • The migration has positioned the U.S. as a leading hub for cryptocurrency mining activity, bolstering its tax base and strengthening its technical and infrastructure capabilities in the blockchain space.

• Annie

  • That's quite a shift in the global mining power.

  • Did Wang Yang mention anything else?

  
• 

  Kang-hoon

  • Yes, he also pointed to the potential geopolitical impact of the upcoming U.S. presidential election.

  • He suggested that a Trump administration might adopt more crypto-friendly policies, which could further influence China's stance on cryptocurrencies.

• Annie

  • Interesting!

  • So, how do you think this news will affect the market?

  
• 

  Kang-hoon

  • In the short term, this news could be seen as a negative development for the cryptocurrency market.

  • The uncertainty surrounding China's policy and potential geopolitical shifts could create volatility and instability.

• Annie

  • Got it.

  • Thank you for the detailed explanation, Kang-hoon.

  • This really helps me understand the broader implications!😊

  
• 

  Kang-hoon

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.