China’s “attack on cryptocurrencies” has failed. Miners continue to work and volumes are growing rapidly

The cryptocurrency market experienced a huge drop in May, which was, among other things, associated with tough measures imposed by China. The local government regulators hit hard against miners and local stock exchanges, which resulted in up to 90% of all miners in the country.

At that time, the Asian country accounted for up to 65% of global bitcoin production, and these measures therefore also caused a decrease in the total hashate of up to 50%. However, as he informs CoinTelegraph, with this “attack” by China, the market was able to cope in a relatively short time.

Bitcoin network deals with China “in its own way”

After reaching a maximum of 186 million TH / s (trillion hashes per second) on 12 May, the bitcoin network hashrate began to sink to the bottom at 85 million TH / s, the lowest value in two years.

According to the analysis Blockchain.com however, the hashrate has stabilized and returned relatively quickly above the level of 100 million TH / s, currently reaching approximately 110 million TH / s. This shift can also be attributed to the fact that many miners moved their operations to Kazakhstan, the USA and Canada.

The huge decline in mining in China has also proved to be beneficial for miners in other parts of the world, as confirmed by the Slovak miner Jozef in a recent interview. After tough measures in China, he also recorded a decline in the overall hashrat in the second largest cryptocurrency, etherea.

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However, the bans in China did not only apply to mining, the country also tightened up the activities of local stock exchanges and exchange offices, which it blocked, for example, from web search results. The big Huobi exchange subsequently began to restrict leverage trading and blocked new users from China.

The Chinese central bank also commented expressed “major concerns” about global risks resulting from the use of certain digital names, in particular the so-called stablecoins, i.e. cryptocene with minimal volatility, usually tied to government currencies or assets.

However, there is another reason behind this hostile attitude, namely the Chinese digital yuan, which the country is developing and we addressed it in this extensive article. However, over time, the complete suppression of trading for Chinese entities would probably also be reflected in stock exchanges such as Binance, OKEx and Huobi, which have benefited greatly from this region in the past.

According to the portal Cryptorank.io however, these three exchanges remain at the forefront of funding, but recall that Binance faces pressure from regulators around the world and restrictions associated with this exchange also affected Slovaks.