In less than a month, one of the most significant decisions impacting the price of Bitcoin will be revealed when China’s mining ban proposal returns after public consultation. With the source of a majority of Bitcoin’s hashpower being nipped in the bud, many analysts predict this could have grave implications on the larger market.
Mati Greenspan, a senior market analyst with eToro, debunked the FUD created by the proposed ban. In an exclusive interview with AMBCrypto, he added that the ban needs to be viewed from a more holistic perspective. He toed the line, suggesting that a bullish trend cannot be confirmed. However, the chances of the market going up rather than going down are more likely, he said.
“What my feeling is, is that it’s more likely to be bullish than bearish.”
The mining report by the country’s National Development and Reform Commission [NDRC] was “largely misunderstood,” according to Greenspan, with many in the crypto-community suggesting that a price decline was imminent.
The way the report was being perceived was short-sighted, he added, as the origin of the ban was way back in 2017. Greenspan added that China is employing a “multi-decade strategy,” not to target cryptocurrency, but to become a “clean energy country, within the next few years.”
In light of this national objective, the electricity consumed by Bitcoin miners is not “clean” and hence, according to Greenspan, the government began to push for a “gradual phase out” of the mining industry in 2017. He added that the government employed the tools of regulation and taxation to “limit the [mining] activity so that it doesn’t get out of control.”
The mining ban was not an isolated attack as several other industries are mentioned in the NDRC report,