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Hayes wrote a blog post called “Comeback” on October 26 to explain why he thinks China is trying to get back into the market. This was a response to the news that the Hong Kong government was going to propose a law to control cryptocurrency. One reason could be that Hong Kong is “the middleman through which China talks to the rest of the world:” Check out the best altcoins to invest in if you’re looking for investment opportunities.
“When people use cryptocurrencies again, the bull market will return. It will take a long time, but the plant grows because it has red shoots. If these flows go the way I think they will, they will be a big part of the next bull market.
Hayes says that Beijing wants to weaken its position without upsetting its financial system by “reorienting as a pro-crypto place.” This part concerns Hong Kong’s “reorientation as a crypto-friendly location.”
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Forex Suggest was surveyed in July 2022, and the results showed that Hong Kong was where people were most ready to use cryptocurrencies. It looked at many things, such as how many cryptocurrency ATMs there are, how good the regulatory environment is, and how entrepreneurial the culture is.
China has one of the biggest economies in the world, but the country has been mostly negative about the cryptocurrency business. The first law against something was made in 2013 when banks were told they couldn’t deal with bitcoin.
On the other hand, Hayes says, “China hasn’t given up on crypto; it’s just stopped doing anything with it.”China did start mining Bitcoin in September 2022, and the Chainalysis 2022 Global Crypto Adoption Index said that China had moved from 13th place in 2021 back into the top 10 by 2022. In 2021, China was 13th on the index.
The people who made the Global Crypto Adoption Index said that the change was “especially interesting” because the Chinese government has been cracking down on cryptocurrency. But their data shows that “the ban either hasn’t worked or hasn’t been enforced very well.” In other words, the Chinese government hasn’t been able to stop many people from using cryptocurrencies.
China stopped letting people mine Bitcoin a year ago, but the US is still its most important place. On the other hand, it has returned to China, which is now the second-largest place. The Cambridge Centre for Alternative Finance released a Tuesday report that the United States was responsible for 37.84% of the global hashrate. The hash rate is a way to figure out how much computer power is needed to make digital currency.
Checks were made on the hashrate between September and January. Hashrate, also in charge of keeping the Bitcoin network safe, has made a strong comeback and reached new highs after dropping last year. This is what happened when things got worse.
Even though China stopped mining a year ago, the CCAF says that the country has “re-emerged as a major mining hub” and is now responsible for 21.11 percent of the global hash rate. People say that “copper mining operations” are to blame for this sudden rise in activity, and there has been a sudden rise in mining activity in the country.
In the study, CCAF said, “This strongly suggests that there is a lot of underground mining going on in the country.” This has been known for a long time by people in the business, and this shows it. This is a good sign that a lot of underground mining is happening in the country.
Cover photo by Manson Yim on Unsplash
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