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Will Bitcoin Mining Farm in China be Closed?
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Pictures of “Technical Preplan on Blocking Bitcoin overseas Transaction” were circulated in Wechat group and later posted on weibo around 18pm 16 September. The document describes the preplan of blocking bitcoin exchanges and Bitcoin blockchain data-syncing, along with a list of overseas exchanges. The news caused panic sell, a daily low of 16,661 was observed on OKCoin around that time. Chinese Bitcoin community is vulnerable after the “exchange ban”. Could things get worse like shutting down mining pool in China?
Although the screenshots or pictures cannot be verified without a reliable source, a report on Sina confirmed the authenticity, citing support from “insiders”.
Technical Preplan for blocking Bitcoin overseas transaction
The technical measures that should be deployed by 30 September include:
1. Block accesses to overseas exchanges such as Coinbase, bitfinex, localbitcoins on main egress router, including web access, app access, and API access interfaces.
2. Block access to the Bitcoin seeding nodes on the primary exit router,
3. Through DPI recognition, discard Bitcoin blockchain synching data on main firewall.
The Bitcoin exchanges mentioned in the document include: Coinbase, Okex, Okcoin, Bithumb, Bittrex, coinone, bitflyer, bitstamp, bitstar, bitfinex, Poloniex, kraken, bitmex, localbitcoins.
Meanwhile, to prevent nodes from synching data through VPN, mining pools in China (Appendix 4) will be closely monitored and
“Contact local communication administration authority to cut off internet access of mining pool if necessary. “
The “Appendix 4” is missing but the strong-arm of authority is not to be doubted. In the past,
According to a document released by XJEIC (the Economic and Information Commission of Xinjiang Uyghur Autonomous Region) on 19th July, the authority asked subsidiaries to “take caution on supporting Bitcoin mining enterprises”. The 2-page document points out that Bitcoin mining is not cloud computing center. Mining farm has no economic contributions locally other than “consumption of lots of power”.
“Take caution on supporting Bitcoin mining enterprises”released by XJEIC
The document also suggests that the renting fee of such mining farm should be collected once a month and other premium policy like taxation cut are not applicable for such business.
“Local government or enterprises is suggested not to get involved
According to forum post on 8btc, Bitmain planned to build huge data center in Xinjiang. But the plan was delayed by bad weather, according to chatlog by Jiang Zhuo’er.
The news may be FUD, but Haipo Yang, CEO of Viabtc, expressed his concern:
Technically, China can’t ban bitcoin traffic, we have our own sync network. But if China gov say mining is illegal, we are fucked.
Mining pools business is not considered illegal at the moment, and BTCChina reiterates that the BTCC mining pool service continue after the trading closure on 30 September. We have observed a turn of regulatory attitude towards Bitcoin and other cryptocurrencies. As 5 out of top 6 bitcoin mining pools are situated in China, it would be a disaster if internet connection of these mining pools were taken offline.
Bitcoin network saw a 19.58% difficulty increase at blockheight 485,856 yesterday.
Learn cryptocurrency and digital assets since 2013 and co-founder of 8btc in 2014. Co-author of 2014-2015 Digital Currency Development Report(2015) and first author of Investment Guidelines To Blockchain Digital Currency (Published in June 2017 ISBN:9787300239286).
COMMENTS(87)
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What will happen to the chinese BTC miners ?
Quote from: catlovedog on September 15, 2017, 10:47:41 PM
What will happen to the chinese BTC miners ?
Most likely there will be some turbulence for them at the very least. They are going to need to work around the government regulation and either go more underground, or move to locations outside China for the time being.
It’s not mining that’s been affected in china, just trading exchanges. They can still exchange that btc for currency at exchanges in other countries.
Quote from: craZyLovE0916 on September 15, 2017, 11:34:29 PM
Quote from: catlovedog on September 15, 2017, 10:47:41 PM
What will happen to the chinese BTC miners ?
Most likely there will be some turbulence for them at the very least. They are going to need to work around the government regulation and either go more underground, or move to locations outside China for the time being.
How it possible to move so large mines?
It’s not mining that’s been affected in china, just some small exchanges. They can still exchange that btc for currency at exchanges in other countries.And this likely drama from bad China Gov want to buy bitcoin in big dip
Quote from: Biffa on September 16, 2017, 08:48:28 AM
It’s not mining that’s been affected in china, just trading exchanges. They can still exchange that btc for currency at exchanges in other countries.
I actually had thought this only what could be the China next step as they have already banned ICO. Will they only limit this as they raise the money from public while trading and mining does not raise the money as such so will it continue to happen the same way or will they even put a ban on this is the query which still exits.
The Chinese government feared the existence of alternative crypto economy and therefore trying to deal with it. The exchange will move to other countries and will not trade for the yuan. The miners will have more difficult. Perhaps they will move to other countries. For example in Russia in the far East. There are already a lot of Chinese. Perhaps India or some other country to host the power of the Chinese miners. Crypto currency that will not stop. The people want change.
Quote from: Biffa on September 16, 2017, 08:48:28 AM
It’s not mining that’s been affected in china, just trading exchanges. They can still exchange that btc for currency at exchanges in other countries.
Quote from: cryptovn83 on September 16, 2017, 03:59:50 PM
It’s not mining that’s been affected in china, just some small exchanges. They can still exchange that btc for currency at exchanges in other countries.And this likely drama from bad China Gov want to buy bitcoin in big dip
To add to that, I daresay that it’s also very unlikely that China will ban crypto-currency mining. China is known to go through great lengths to keep money within their own economy while pushing exports (ie. trying to suppress the movement of capital out of China, while fostering the movement of capital in to China).Trading crypto-currencies is a great way to move capital across borders, thus would help moving capital out of China. Not exactly what the Chinese government wants. Mining on the other hand, merely creates bitcoins that can be “exported” to other nations, thus drawing capital into China.
Quote from: cryptovn83 on September 16, 2017, 03:59:50 PM
It’s not mining that’s been affected in china, just some small exchanges.
Huboai and OKCoin are NOT “small exchanges” – they are 2 of the 4 or 5 largest exchanges in the world. There are also some rumours that China is trying to get access restrictions added to the “Great Firewall of China” against all of the major foreign cryptocoin exchanges. Ease of moving capital across borders is exactly what China seems to be TARGETING – they’ve been suffering a LOT of Capital Flight since their economy and the Yuan started tanking. I suspect they will leave Bitmain Innosilicon and the other Chinese-based miner makers along, as those companies are bringing foreign exchange INTO the country in significant numbers.
They will ALL move to Canada and open a Chinese restaurant.
As known, China is a cottage for mining with cheap electrical resources. It dominates over 60% of global hashing power in BTC. How if they suddenly ban all mining rigs, what impacts will it yield thereby?
Pictures of Technical Preplan on Blocking Bitcoin overseas Transaction were circulated in Wechat group and later posted on weibo around 18pm 16 September. The document describes the preplan of blocking bitcoin exchanges and Bitcoin blockchain data-syncing, along with a list of overseas exchanges. The news caused panic sell, a daily low of 16,661 was observed on OKCoin around that time. Chinese Bitcoin community is vulnerable after the exchange ban. Could things get worse like shutting down mining pool in China?Although the screenshots or pictures cannot be verified without a reliable source, a report on Sina confirmed the authenticity, citing support from insiders.Technical Preplan for blocking Bitcoin overseas transactionThe technical measures that should be deployed by 30 September include:1. Block accesses to overseas exchanges such as Coinbase, bitfinex, localbitcoins on main egress router, including web access, app access, and API access interfaces.2. Block access to the Bitcoin seeding nodes on the primary exit router,3. Through DPI recognition, discard Bitcoin blockchain synching data on main firewall.The Bitcoin exchanges mentioned in the document include: Coinbase, Okex, Okcoin, Bithumb, Bittrex, coinone, bitflyer, bitstamp, bitstar, bitfinex, Poloniex, kraken, bitmex, localbitcoins.Meanwhile, to prevent nodes from synching data through VPN, mining pools in China (Appendix 4) will be closely monitored andContact local communication administration authority to cut off internet access of mining pool if necessary. The Appendix 4 is missing but the strong-arm of authority is not to be doubted. In the past,According to a document released by XJEIC (the Economic and Information Commission of Xinjiang Uyghur Autonomous Region) on 19th July, the authority asked subsidiaries to take caution on supporting Bitcoin mining enterprises. The 2-page document points out that Bitcoin mining is not cloud computing center. Mining farm has no economic contributions locally other than consumption of lots of power.Take caution on supporting Bitcoin mining enterprisesreleased by XJEICThe document also suggests that the renting fee of such mining farm should be collected once a month and other premium policy like taxation cut are not applicable for such business.Local government or enterprises is suggested not to get involvedAccording to forum post on 8btc, Bitmain planned to build huge data center in Xinjiang. But the plan was delayed by bad weather, according to chatlog by Jiang Zhuoer.The news may be FUD, but Haipo Yang, CEO of Viabtc, expressed his concern:Technically, China cant ban bitcoin traffic, we have our own sync network. But if China gov say mining is illegal, we are fucked.Mining pools business is not considered illegal at the moment, and BTCChina reiterates that the BTCC mining pool service continue after the trading closure on 30 September. We have observed a turn of regulatory attitude towards Bitcoin and other cryptocurrencies. As 5 out of top 6 bitcoin mining pools are situated in China, it would be a disaster if internet connection of these mining pools were taken offline.Bitcoin network saw a 19.58% difficulty increase at blockheight 485,856 yesterday.http://news.8btc.com/will-bitcoin-mining-farm-in-china-be-closed
China could succeed in helping less competitive Bitcoin mining regions get further back into the marketplace, removing the dominant influence of China based pools and mines. And it would be a win against the “anthropogenic climate change” hand waving too (China’s electricity being in no small part produced in coal powered stations).But the stated aim (eliminating capital flight from the Chinese economy) won’t work without crippling the Chinese state into something as authoritarian as North Korea. The Chinese people, and in particular it’s traveling, educated middle-class, are unlikely to be happy with the changes needed to eliminate capital flight effectively (further restrictions to travel and access to information would definitely be 2 important aspects of a successful elimination of capital flight). And even then, smart and/or educated Chinese people will skirt the ban, and Bitcoin will continue to be one of the successful methods.Maybe the PRC could limit capital flight to only the most powerful and/or corrupt individuals, but that’s a recipe for disaster also, really. Authoritarians in powerful states often die strangling themselves and those closest to them before they succeed in killing the whole country and it’s people.
Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom
Will Bitcoin Mining Farm in China be Closed? | http://NEWS.8BTC.COM http://news.8btc.com/will-bitcoin-mining-farm-in-china-be-closed …
Not less important how possible Chinese mining farm ban could affect BTC price. Besides huge farms are very significant factor for chip manufacturers to constantly increasing computing power.
Simon Dixon was talking about this. He was in China when the China exchanges news hit. He has been talking with many in the Chinese crypto world. Not out of the realm of possibilities. Better to think of these things and be ahead of any curve.
Quote from: Philopolymath on September 18, 2017, 12:08:14 AM
They will ALL move to Canada and open a Chinese restaurant.
San Francisco. Didn’t you see “Chinatown”? 9-)
I have had a vision;) This can be the end of SHA256 as we know it.Who will be next ethereum or dash? Or lite coin? Do we have a new leading coin in 2018 because to many SHA is located in the east? I already turned my ethminer on but somewhere I think asic are preferred for the next leader so maybe dash is better.
Great quality content as usual, thank you for reposting here.
Read the announcements out of China carefully, They ban ICOs, they are shutting down the Crypto-Exchanges and there is no mention of Crypto Mining. China want to play Crypto Game on its own term. They are Leaders in Cryptomining Specially Bitcoin mining, they will not let this position go very easily.
Don’t be so sure …http://news.8btc.com/will-bitcoin-mining-farm-in-china-be-closed
Especially if you’re a would-be miner outside China!
Quote from: Philopolymath on September 18, 2017, 12:08:14 AM
They will ALL move to Canada and open a Chinese restaurant.
Nice maybe I can get a miner and an egg roll special, preferably in a different bag.
I doubt it. Bitcoin hasn’t been banned. Officials only really wanted to stop ICO scams.
Also the local governments like Bitcoin miners. They purchase a lot of electricity, which keeps local economies funded.
Judging by what draconian measures China officials take with respect to the cryptoplite, which should lead to the complete blocking of transactions in the country, it is possible that China will prohibit mountain farms for the production of bitcoins. However, for bitcoin, this will not be a serious blow, because the Japanese are ready to start the production of bitcoin and continue what was previously done in China.
Seriously though, this is a tempest in a teapot.The ICO’s will finally be regulated the same as IPO’s are to remove the Ponzi and/or pump-n-dump players/scammers. Aslo need to point out that ICO’s are NOT Bitcoin instruments. They are AFAIK 100% an aberration of the altcoin world.Exchanges will have to act like any other bank or securities trading exchange eg follow AML/KYC rules and keep sufficient cash reserves on hand for customer accounts.I see this as only Good things for the crypto coin world.
Quote from: Marry Finch on September 18, 2017, 10:16:07 PM
Judging by what draconian measures China officials take with respect to the cryptoplite, which should lead to the complete blocking of transactions in the country, it is possible that China will prohibit mountain farms for the production of bitcoins. However, for bitcoin, this will not be a serious blow, because the Japanese are ready to start the production of bitcoin and continue what was previously done in China.
When could Japanese set up the mining farm? China could block bitcoin data syncing 11 days later.
Quote from: Carlton Banks on September 18, 2017, 10:11:08 AM
China could succeed in helping less competitive Bitcoin mining regions get further back into the marketplace, removing the dominant influence of China based pools and mines. And it would be a win against the “anthropogenic climate change” hand waving too (China’s electricity being in no small part produced in coal powered stations).But the stated aim (eliminating capital flight from the Chinese economy) won’t work without crippling the Chinese state into something as authoritarian as North Korea. The Chinese people, and in particular it’s traveling, educated middle-class, are unlikely to be happy with the changes needed to eliminate capital flight effectively (further restrictions to travel and access to information would definitely be 2 important aspects of a successful elimination of capital flight). And even then, smart and/or educated Chinese people will skirt the ban, and Bitcoin will continue to be one of the successful methods.Maybe the PRC could limit capital flight to only the most powerful and/or corrupt individuals, but that’s a recipe for disaster also, really. Authoritarians in powerful states often die strangling themselves and those closest to them before they succeed in killing the whole country and it’s people.
GFW is very a powerful tool.
Quote from: ZiG on September 18, 2017, 08:19:33 PM
Don’t be so sure …http://news.8btc.com/will-bitcoin-mining-farm-in-china-be-closed
Another news out: https://www.cryptocoinsnews.com/china-bitcoin-exchange-ban-extend-otc-trading-maybe-mining-wsj/Yes, just right after my question here. Here probably by a chance for sell-off-buy-back strategy!?
Quote from: HeRetiK on September 17, 2017, 11:12:46 AM
Quote from: Biffa on September 16, 2017, 08:48:28 AM
It’s not mining that’s been affected in china, just trading exchanges. They can still exchange that btc for currency at exchanges in other countries.
Quote from: cryptovn83 on September 16, 2017, 03:59:50 PM
It’s not mining that’s been affected in china, just some small exchanges. They can still exchange that btc for currency at exchanges in other countries.And this likely drama from bad China Gov want to buy bitcoin in big dip
To add to that, I daresay that it’s also very unlikely that China will ban crypto-currency mining. China is known to go through great lengths to keep money within their own economy while pushing exports (ie. trying to suppress the movement of capital out of China, while fostering the movement of capital in to China).Trading crypto-currencies is a great way to move capital across borders, thus would help moving capital out of China. Not exactly what the Chinese government wants. Mining on the other hand, merely creates bitcoins that can be “exported” to other nations, thus drawing capital into China.
It is hard to say:http://news.8btc.com/will-bitcoin-mining-farm-in-china-be-closedDo realize that a country talking about absolute power and ruled by a single political party, they can implement anything ridiculous!
Just a rough imagination, if 60% hashing rate off from China suddenly, the whole network becomes less secure by 60% too, as difficult dropping greatly so as to fit the block time. Will its values go down rapidly? BTC consumes real world assets like electricity. That’s the drawback of PoW. Seems like if the information is true, a really huge opportunity visiting again?
Wonder to know the hashing power of Bitcoin cash in China, if it is low, capital may flow into that upon China’s mining rigs switching off?
Given the intentions of the Chinese government to prohibit its citizens from accessing any foreign exchange bureaus of crypto currency, it is entirely possible that all the farms for mining bitcoin in China will be closed. After such a last information, nothing is surprising.
Oh boy they’re at it again, of course after seeing they just doubled the total supply of Bitcoin overnight while the government is working their asses off to justify paper money printing %5 every month, they saw $5B came out of the thin air and suddenly billions were flying out of the country, you expect them to sit and watch? I’m getting ready to fill their shoes when the battle begins and difficulty decreases.
Quote from: maleemk on September 18, 2017, 08:10:26 PM
Read the announcements out of China carefully, They ban ICOs, they are shutting down the Crypto-Exchanges and there is no mention of Crypto Mining. China want to play Crypto Game on its own term. They are Leaders in Cryptomining Specially Bitcoin mining, they will not let this position go very easily.
It’s interesting. He’s talking about the what if scenerio and not about the current news, right?
Quote from: Falgorn on September 19, 2017, 03:40:53 AM
Given the intentions of the Chinese government to prohibit its citizens from accessing any foreign exchange bureaus of crypto currency, it is entirely possible that all the farms for mining bitcoin in China will be closed. After such a last information, nothing is surprising.
But closing these farms wouldn’t prevent capital flight, Right? The current shutting down of Bitcoin exchanges is way more effective nd it could prevent a lot of common people from accessing Bitcoin. Blocking blockchain sync data and banning mining are extreme steps
Chinese Government is formed by one party rule so there is not a strong opposition party to criticize them while for a policy newly implementing whether it is write or wrong .In such a situation the current government is actually scared of permitting a parallel currency along with Yen the centrally controlled economy togetherwith the decentralised bitcoin which can be operated world wide.one country cannot control bitcoin. By evaluating the merits and demerits gradually and hopfully China also revive the ban
Thanks for the acknowledgement!
Bitmain’s mining farm in Xinjiang may be affected. #bitcoin http://news.8btc.com/will-bitcoin-mining-farm-in-china-be-closed …pic.twitter.com/tKOCOvzzOn
That picture looks super fake, Chinese looks good though
:3 They will move to new country for mining.
China continuously banning trading and crypto exchanging platforms, Chinese traders and miners has already started to move on Japanese market where BTC is seen like a future.There is a risk or a chance that the mining will be also banned in China.So what if it will happen and mining will be prohibited in China, knowing that this country is controlling around 65% of BTC traffic, I think it will be a huge opportunity for the rest of the world’s miners… and probably a big dip of all crypto currencies in the nearest future.Useful article news.8btc.com/will-bitcoin-mining-farm-in-china-be-closedYour thoughts
Stop feeding the OP Troll.They are repeating pretty much the same query in several different areas under different new accts. Different names on acts but exact same writing style – and question.
Quote from: antoinesco on September 19, 2017, 11:16:17 AM
China continuously banning trading and crypto exchanging platforms, Chinese traders and miners has already started to move on Japanese market where BTC is seen like a future.There is a risk or a chance that the mining will be also banned in China.
So.Quote
So what if it will happen and mining will be prohibited in China, knowing that this country is controlling around 65% of BTC traffic, I think it will be a huge opportunity for the rest of the world’s miners… and probably a big dip of all crypto currencies in the nearest future. That could happen. But “China” has absolutely no “control” of bitcoin. Many Chinese people control a wallet of their own money. Many Chinese people have their own mine. The fact that China can’t control bitcoin is their problem with it. It is all about China trying to control Chinese people. Quote
Useful article news.8btc.com/will-bitcoin-mining-farm-in-china-be-closedYour thoughts
How is that “useful”? It’s an article that asks the readers if there will be a ban. lol
The document you cited is from June, how is this still relevant? Other points are a few days old now…
Quote from: RodeoX on September 19, 2017, 01:40:07 PM
Quote from: antoinesco on September 19, 2017, 11:16:17 AM
China continuously banning trading and crypto exchanging platforms, Chinese traders and miners has already started to move on Japanese market where BTC is seen like a future.There is a risk or a chance that the mining will be also banned in China.
So.Quote
So what if it will happen and mining will be prohibited in China, knowing that this country is controlling around 65% of BTC traffic, I think it will be a huge opportunity for the rest of the world’s miners… and probably a big dip of all crypto currencies in the nearest future. That could happen. But “China” has absolutely no “control” of bitcoin. Many Chinese people control a wallet of their own money. Many Chinese people have their own mine. The fact that China can’t control bitcoin is their problem with it. It is all about China trying to control Chinese people. Quote
Useful article news.8btc.com/will-bitcoin-mining-farm-in-china-be-closedYour thoughts
How is that “useful”? It’s an article that asks the readers if there will be a ban. lol
There is indeed nothing that suggest anything new by China, after the ban there will be no more FUD. And even if China actually banned bitcoin mining, it would be extremely bullish because we don’t even need that much hashrate to be safe, and the rest of the remaining miners would be very happy to find out the decrease in difficulty. Also new miners would arise taking advantage of the decrease of difficulty.In general it would help since one of the axis of evil (Bitmain) would no longer have things so easy for them.
Banning of mining seems to be next. Question: should we then prepare our gear to mine? It will be profitable and equipment prices will shoot up even higher by then. Secondly, the BTC confirmation time should be absolutely horrendous. Price will have a drop. How to prepare?
Why is text over the government stamp? Do they stamp blank paper before they print? Is that normal?
I read in a couple of forums that China would be introducing a licensing program. Just like in the US you have to have a license to carry certain firearms, you would have to have a license to trade or mine crypto’s. I think the Chinese government just realized how often the coins were used for illegal goods and are trying to stop that. Sounds like an interesting idea for keeping the coins clean
위구르 자치구 경제 정보위원회는 채굴장은 “많은 전력 소비”외에 경제적 기여하지 못함. 이번 중국채굴금지문건과 함께 주목받고 있다.http://news.8btc.com/will-bitcoin-mining-farm-in-china-be-closed …
I saw news somewhere, China only trying to show international community. The fact is, China will not ban the bitcoin mining.
Doesn’t Bitmain also have large mining farms in Mongolia? Might need to ship more there.
Don’t get stuck in China, miners need to evacuate right now.https://twitter.com/kanzure/status/909432346465538049 …
Hopefully, we all just watch the market and see a bunch of mining rigs from China go on sale $$$But I did hear recently from a couple of forums and an article that the Chinese government was toying with the idea of licensing out Crypto traders and miners. Just like in the US, to carry certain firearms, you have to have a permit; in China, you would have to have a license to trade or mine crypto. This idea seems like more of an attempt to keep the money from illegal use rather than ban the coins outright. Excellent idea down the road, but as of right now it’s a bit frustrating
I am glad that this is just another FUD/rumor etc.Just a newbie question.Lets say that they ban mining. Then the BTC will be more rare due to the increased mining difficulty and thus the price will rise, right? If something is more rare then its more precious. Or am I missing something?
Quote from: Miningstore on September 19, 2017, 06:38:00 PM
Hopefully, we all just watch the market and see a bunch of mining rigs from China go on sale $$$But I did hear recently from a couple of forums and an article that the Chinese government was toying with the idea of licensing out Crypto traders and miners. Just like in the US, to carry certain firearms, you have to have a permit; in China, you would have to have a license to trade or mine crypto. This idea seems like more of an attempt to keep the money from illegal use rather than ban the coins outright. Excellent idea down the road, but as of right now it’s a bit frustrating
They talk about “illegal use” as a worry, but their REAL worry is “capital flight out of China”.
I don’t understand why people are pumping BCash after such news, when most of the mining for this coin is in China.
Quote from: DrStein on September 19, 2017, 08:40:58 PM
I am glad that this is just another FUD/rumor etc.Just a newbie question.Lets say that they ban mining. Then the BTC will be more rare due to the increased mining difficulty and thus the price will rise, right? If something is more rare then its more precious. Or am I missing something?
It will make mining easier for non-Chinese, resulting in a big difficulty drop – but the price DOES NOT CARE ABOUT THE DIFFICULTY. It should improve PROFITABILITY a lot for those that can still mine though – fewer folks sharing the SAME SIZE pie.
Big brother says: Kill’em, kill’em all!
via http://NEWS.8BTC.COM http://news.8btc.com/will-bitcoin-mining-farm-in-china-be-closed …
Quote from: NotFuzzyWarm on September 20, 2017, 01:50:05 AM
Quote
It will make mining easier for non-Chinese, resulting in a big difficulty drop – but the price DOES NOT CARE ABOUT THE DIFFICULTY.Precisely.Again preaching to the choir for some but the this is for the Newbs with little understanding on the BTC Networks most basic function: Maintaining an average time of 10 minutes for each block.Fewer miners = lower Network hash rate so time per-block goes up. Network sees that and lowers diff to correct back to the 10 minute setpoint. Of course that mainly works the other way as well — more/faster miners on the BTC Network and Diff goes up because blocks are solved faster (for a while).The fact that the BCC network responds faster with its diff changes as (mainly Chinese?) farms keep switching back and forth between mining BTC and BCC is rather raising hell with the PID response loop of the BTC network.. An intentional ‘feature’ of the BCC protocol?
yes bcc is a direct attempt to manipulate btc diff rates for profit.I have been studying patterns look herelook here viabtc has auto switching between btc and bccBCC Stratum URL:stratum+tcp://bcc.viabtc.com:3333New BTC/BCC Automatic Switch Stratum URL:stratum+tcp://smart.viabtc.com:3333which move hash between BCC and BTCwhen BTC jumped 20% the other day tons of hash auto switched to BCC
Quote from: Falgorn on September 19, 2017, 03:40:53 AM
Given the intentions of the Chinese government to prohibit its citizens from accessing any foreign exchange bureaus of crypto currency, it is entirely possible that all the farms for mining bitcoin in China will be closed. After such a last information, nothing is surprising.
Problem is that will other countries follow suit?
Quote from: Tesorex on September 19, 2017, 03:41:02 AM
Oh boy they’re at it again, of course after seeing they just doubled the total supply of Bitcoin overnight while the government is working their asses off to justify paper money printing %5 every month, they saw $5B came out of the thin air and suddenly billions were flying out of the country, you expect them to sit and watch? I’m getting ready to fill their shoes when the battle begins and difficulty decreases.
You need a miner to substitute the difficulty drop, if there is any.
Quote from: Carlton Banks on September 18, 2017, 10:11:08 AM
China could succeed in helping less competitive Bitcoin mining regions get further back into the marketplace, removing the dominant influence of China based pools and mines. And it would be a win against the “anthropogenic climate change” hand waving too (China’s electricity being in no small part produced in coal powered stations).But the stated aim (eliminating capital flight from the Chinese economy) won’t work without crippling the Chinese state into something as authoritarian as North Korea. The Chinese people, and in particular it’s traveling, educated middle-class, are unlikely to be happy with the changes needed to eliminate capital flight effectively (further restrictions to travel and access to information would definitely be 2 important aspects of a successful elimination of capital flight). And even then, smart and/or educated Chinese people will skirt the ban, and Bitcoin will continue to be one of the successful methods.Maybe the PRC could limit capital flight to only the most powerful and/or corrupt individuals, but that’s a recipe for disaster also, really. Authoritarians in powerful states often die strangling themselves and those closest to them before they succeed in killing the whole country and it’s people.
I am sure that soon there would be a digital uprising due to the controls imposed by their government right now…this can be too much especially for the newly emerging middle class section of the country. When you have the money and you lack the freedom to do something with it, there can be some resistance and the government have to careful to thread along this line. It may not be happening right now away and it can take many years but definitely changes would be brewing in China. There can be new and younger leaders who might not be too comfortable with the way the country is being governed right now and if there would be some economic problems they can be the catalysts needed for some reforms. China remains to be that bully boy in Asia no matter how good is their diplomatic handshakes are.
Quote from: QuintLeo on September 19, 2017, 09:16:45 PM
It will make mining easier for non-Chinese, resulting in a big difficulty drop – but the price DOES NOT CARE ABOUT THE DIFFICULTY.
This assumption may not be absolute, as if > 60% of hashing power disappears suddenly, the entire network will be at least 60% less secure. The first reaction of BTC investors / speculators is selling off. Also, the transaction fee will be raised significantly and takes at least double time to digest all pending transactions, really a disaster in short term! Surely, with time going, more and more global miners will actively participate into this game again as mining BTC becomes more profitable than before!
Quote from: eth888 on September 20, 2017, 04:37:14 AM
Quote from: QuintLeo on September 19, 2017, 09:16:45 PM
It will make mining easier for non-Chinese, resulting in a big difficulty drop – but the price DOES NOT CARE ABOUT THE DIFFICULTY.
This assumption may not be absolute, as if > 60% of hashing power disappears suddenly, the entire network will be at least 60% less secure. The first reaction of BTC investors / speculators is selling off. Also, the transaction fee will be raised significantly and takes at least double time to digest all pending transactions, really a disaster in short term! Surely, with time going, more and more global miners will actively participate into this game again as mining BTC becomes more profitable than before!
Transaction processing time will only get worse ’till the next difficulty period hits, so that would be a short-term issue. Same on transaction processing fee, though that MIGHT linger a short while past the diff change due to accumulated transaction backlog. The REAL question is “would this shut down the miner MAKERS like Bitmain and Innosilicon and Caanan”, along with “what happens to all of the no-longer-usable miners IN China if China does in fact manage to shut down mining in the country”.
Quote from: QuintLeo on September 20, 2017, 08:03:14 AM
Quote from: eth888 on September 20, 2017, 04:37:14 AM
Quote from: QuintLeo on September 19, 2017, 09:16:45 PM
It will make mining easier for non-Chinese, resulting in a big difficulty drop – but the price DOES NOT CARE ABOUT THE DIFFICULTY.
This assumption may not be absolute, as if > 60% of hashing power disappears suddenly, the entire network will be at least 60% less secure. The first reaction of BTC investors / speculators is selling off. Also, the transaction fee will be raised significantly and takes at least double time to digest all pending transactions, really a disaster in short term! Surely, with time going, more and more global miners will actively participate into this game again as mining BTC becomes more profitable than before!
Transaction processing time will only get worse ’till the next difficulty period hits, so that would be a short-term issue. Same on transaction processing fee, though that MIGHT linger a short while past the diff change due to accumulated transaction backlog. The REAL question is “would this shut down the miner MAKERS like Bitmain and Innosilicon and Caanan”, along with “what happens to all of the no-longer-usable miners IN China if China does in fact manage to shut down mining in the country”.
Asking the right questions – though I think Canaan and Innosilicon are not based in china directly. Bitmain could probably maintain its operation on the hardware manufacture side and sell to other miners, they could also move their mines to somewhere else – but that is a *big* move for the number of machines they are farming with, it would take weeks to select a location, and maybe months to start it up again. (That is, assuming they haven’t been preparing for this already). There aren’t that many reliable electric grids out there with cheaper power than China – I might see a local bitmain office where I live! (WA State). The other option is that Bitmain liquidates all/some of its hardware and decides to just be a manufacturer, which would be amazingly good for miners and Bitcoin as a whole – we would almost be back to the early days of mining and I wouldn’t be surprised if the S5 became profitable again. The other major question as far as bitcoin’s price – once it is proven that you can shut down a big operation politically, does that influence the idea of bitcoin as a currency that can’t be manipulated by a government?
Quote from: cryptocortex on September 19, 2017, 09:05:36 PM
I don’t understand why people are pumping BCash after such news, when most of the mining for this coin is in China.
And most of the support for BCC. I don’t get it either? An actual crypto ban in China is surely a huge blow to BCC.
Quote from: antoinesco on September 19, 2017, 11:16:17 AM
China continuously banning trading and crypto exchanging platforms, Chinese traders and miners has already started to move on Japanese market where BTC is seen like a future.There is a risk or a chance that the mining will be also banned in China.So what if it will happen and mining will be prohibited in China, knowing that this country is controlling around 65% of BTC traffic, I think it will be a huge opportunity for the rest of the world’s miners… and probably a big dip of all crypto currencies in the nearest future.Useful article news.8btc.com/will-bitcoin-mining-farm-in-china-be-closedYour thoughts
Bitmain is one of the largest bitcoin miner machine provider who is selling all higher end antminer series in online. Since they stopped production and delivery. Many people really worry and getting miner from eBay and other mining selling sites.Some other will be take control about mining and trading part. You can find the news that Japan invested on bitcoin mining worth of 20 million USD.
Quote from: xIIImaL on September 20, 2017, 05:45:32 PM
…Bitmain is one of the largest bitcoin miner machine provider who is selling all higher end antminer series in online. Since they stopped production and delivery. Many people really worry and getting miner from eBay and other mining selling sites.Some other will be take control about mining and trading part. You can find the news that Japan invested on bitcoin mining worth of 20 million USD.
Uh huh…Then please explain why folks on Bitmain’s notification list got this today?”We are pleased to inform you that we will release a new batch of the Antminer S9 here at 11AM tomorrow (21 September, GMT+8)!This new batch, too, delivers a hash rate of 14TH/s and an efficiency of 0.098J/GH. Because of the high demand and the manufacturing period, shipping for this batch will start on a first paid, first ship basis, after 1 December 2017. If we advance the shipment, we will notify you.”Sure looks like they are still making/shipping miners to me….
it’s interesting to think about how will it affect Mining Bitcoin? How will it affect mining bitcoin cash? Will there be a decline in difficulty or just easier for other mined to find block. would be really interesting to see how it affects things. they are the biggest miners, it will affect BTC and BCH hopefully for the better.
Quote from: NotFuzzyWarm on September 20, 2017, 07:34:51 PM
Quote from: xIIImaL on September 20, 2017, 05:45:32 PM
…Bitmain is one of the largest bitcoin miner machine provider who is selling all higher end antminer series in online. Since they stopped production and delivery. Many people really worry and getting miner from eBay and other mining selling sites.Some other will be take control about mining and trading part. You can find the news that Japan invested on bitcoin mining worth of 20 million USD.
Uh huh…Then please explain why folks on Bitmain’s notification list got this today?”We are pleased to inform you that we will release a new batch of the Antminer S9 here at 11AM tomorrow (21 September, GMT+8)!This new batch, too, delivers a hash rate of 14TH/s and an efficiency of 0.098J/GH. Because of the high demand and the manufacturing period, shipping for this batch will start on a first paid, first ship basis, after 1 December 2017. If we advance the shipment, we will notify you.”Sure looks like they are still making/shipping miners to me….
Because they wanna sell that shit as fast as they can while they’re still allowed.
Quote from: aquapanic on September 20, 2017, 02:00:09 PM
Quote from: QuintLeo on September 20, 2017, 08:03:14 AM
The REAL question is “would this shut down the miner MAKERS like Bitmain and Innosilicon and Caanan”, along with “what happens to all of the no-longer-usable miners IN China if China does in fact manage to shut down mining in the country”.
Asking the right questions – though I think Canaan and Innosilicon are not based in china directly.
Innosilicon is fully based in China, but they DO have their non-crypto business to fall back on – they won’t die if crypto manufactures are forced to stop making crypto gear. I’m not sure how much of Caanan is China based. I *CAN* easily see the Chinese government trying to ban all crypto MINING and allowing the manufacturers of mining GEAR to continue – the GEAR is pulling capital INTO the country after all. Hypocritical but what government isn’t?
Quote from: antoinesco on September 19, 2017, 11:16:17 AM
China continuously banning trading and crypto exchanging platforms, Chinese traders and miners has already started to move on Japanese market where BTC is seen like a future.There is a risk or a chance that the mining will be also banned in China.So what if it will happen and mining will be prohibited in China, knowing that this country is controlling around 65% of BTC traffic, I think it will be a huge opportunity for the rest of the world’s miners… and probably a big dip of all crypto currencies in the nearest future.Useful article news.8btc.com/will-bitcoin-mining-farm-in-china-be-closedYour thoughts
My thought is that you’re a Shill. How much do you get paid to spread FUD?
I’m just curious… is it really hard to mine anonymously?I mean, people do worse things when there is money to be made.
Quote from: vegito on September 21, 2017, 03:45:20 PM
I’m just curious… is it really hard to mine anonymously?I mean, people do worse things when there is money to be made.
Solo mining can be done anonymously. For pool mining, you usually need an account on the pool, and there is a big chance logs are kept.But in the end, you still have to cash out your mining rewards to pay the electric bill. Small amounts are rather easy to cash out anonimously, but bigger amounts aren’t.
In that article “a report on Sina (link) confirmed the authenticity”. That link is dead.
http://news.8btc.com/will-bitcoin-mining-farm-in-china-be-closed … #fud #crypto $btc Article states “a report on Sina (link) confirmed the authenticity”. That link is dead.
The trolls just wont give up, I guess the price isn’t low enough yet? If youve been following any of the China regulatory crackdown over the past few weeks in China, youl realize that there has been no mention at all of bitcoin mining.
The China giant mining companies like bitmain and others will STFU their government from banning the cryptocurrency mining with surely a great deal of “negotiation cost” which will be benefitted both of them…..the recent policies regarding cryptocurrency issued by china government surely does have a deterrence effect to get the mining giants bluffed as hell……so china bitcoin mining ban is just an another superstitious myth…..
Quote from: X7 on Today at 01:30:14 AM
Have had some very credible friends tell me this is all just FUD
How will they cashed out the money necessary to pay for the investments they have made if they cannot trade the Crypto they have mined?Will they be allowed to sell contracts or any kind of financial agreement?Could someone be the owner of the mine and do not live in the country? Or could the owner travel to trade the BTC and come back with the money?
Quote from: antoinesco on September 19, 2017, 11:16:17 AM
China continuously banning trading and crypto exchanging platforms, Chinese traders and miners has already started to move on Japanese market where BTC is seen like a future.There is a risk or a chance that the mining will be also banned in China.So what if it will happen and mining will be prohibited in China, knowing that this country is controlling around 65% of BTC traffic, I think it will be a huge opportunity for the rest of the world’s miners… and probably a big dip of all crypto currencies in the nearest future.Your thoughts
So if mining got banned in china and mining over there would ceize in a very short timeframe?The technical aspect is rather easy to predict: There is a diff adjustment every 2016 blocks. So, for a maximum of 2016 blocks, the average time between 2 blocks would be over 20 minutes, during this time, the mempool might bloat, the average recommanded fee would rise, confirmation times would be a lot more (double if you add a high fee, or worse than double if you add a regular fee).After a maximum of 2016 blocks, the diff would get adjusted, and the average time between 2 blocks would be ~10 minutes again and everything would normalise (with a lower network hashrate + diff).When we’re talking about the centralisation of bitcoin, then a ban on mining in china might be the best news for decentralisation we got on a long time… If china’s hashrate would drop to 0, the diff would go down, making mining more profitable for the rest of us, giving miners in other countries an incentive to start mining again (even with slightly older ASIC’s). Since the hashrate would get decentralised a bit more than it is now, a 51% attack might be even less likely than it is now, wich feels contratictory to the drop in hashrate, but since the drop in hashrate would be caused by the stopping of ASIC’s of the people centralising the network, i think it would actually have this effect.when talking about second hand miner trades, all ASIC’s currently running in china *might* get sold to non-chinese miners, making them pretty affordable (certainly in the beginning).When talking about the development of new ASIC’s, hopefully other companies would fill the bitmain void. Non-chinese ASIC companies might even result in better end-user support, guarantee, quality,…I don’t know enough about the economic aspect of china’s BTC mining to make an educated guess about this part.
Quote
It will make mining easier for non-Chinese, resulting in a big difficulty drop – but the price DOES NOT CARE ABOUT THE DIFFICULTY.Precisely.Again preaching to the choir for some but the this is for the Newbs with little understanding on the BTC Networks most basic function: Maintaining an average time of 10 minutes for each block.Fewer miners = lower Network hash rate so time per-block goes up. Network sees that and lowers diff to correct back to the 10 minute setpoint. Of course that mainly works the other way as well — more/faster miners on the BTC Network and Diff goes up because blocks are solved faster (for a while).The fact that the BCC network responds faster with its diff changes as (mainly Chinese?BCC Backers) farms keep switching back and forth between mining BTC and BCC is rather raising hell with the PID response loop of the BTC network.. An intentional ‘feature’ of the BCC protocol?
Have had some very credible friends tell me this is all just FUD
Quote from: TrumpD on September 22, 2017, 03:37:34 PM
The trolls just wont give up, I guess the price isn’t low enough yet? If youve been following any of the China regulatory crackdown over the past few weeks in China, youl realize that there has been no mention at all of bitcoin mining.
Shhhhh! Don’t go confusing them with China is getting around to regulating ALTCOIN’s – not Bitcoin!! See, virtually all altcoins – last count is there being over 1,100 flavors of them – as of late are based in a company announcing a new ICO – as in Internet Coin Offering – or they are releasing more Tokens/share for new Investaards to buy into. There are a few reputable alts but mostly they are Ponzi’s or other outright scams.Rather the same idea as how legitimate companies open up sales of stock in their company with an IPO. Thing is that process is highly regulated to make sure the company actually has value and a business history before they are permitted to do an IPO.In China and many other countries *anyone* can say ‘Hey buy into this new Wonder Coin!’ and being the Wild West of speculation with few if any rules…. Again, Ponzi’s, pump-n-dump, and other scams are/were rife.While Bitcoin is the most common exchange medium when buying/selling alts, Bitcoin inself and the Bitcoin network and mining process have NOTHING to do with what China is cracking down on.
Well you could always go trade coins on Binance with trading fees reduced 50% half off! Easy signup with so many coins!
https://www.binance.com/?ref=15131600
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