Bitcoin’s Mining Economy

Last month, China finally put its foot down. It actualized the threat it’s been peddling since 2018: shutting down all mining within its borders.

The price of Bitcoin (BTC, Tech/Adoption Grade “A-”) dropped on the news, and fearmongers predicted the mass shutdown would be a nail in the King of Crypto’s coffin.

But these talking heads are missing the fundamental resilience of Bitcoin, as Weiss crypto analyst and editor of Weiss Cryptocurrency Portfolio Juan Villaverde points out:

You don’t see in Bitcoin’s design that it needs to be mined out of a particular jurisdiction. There’s nothing in the rules of the network that says, “Oh, by the way, mining needs to be done here, otherwise the network will collapse.”

I mean, the rules are pretty simple, and they state that a certain amount of resources need to be spent to produce next block. If that turns out to be too expensive, if a network is asking for too many resources to be spent, it actually self-adjusts to ask for less resources. It’s kind of a living organism that adapts to whatever the market conditions are at the time.

In our latest Weiss Crypto Sunday Special, Juan and Chris discuss:

•  All the key players in Bitcoin’s mining economy;

•  The potential for some crypto activity to continue in China, even after the mass exodus of miners;

•  The adaptability and durability of the Bitcoin network;

And more!

This comprehensive breakdown of the Bitcoin mining economy is timely and informative. I urge you to watch the full video now.

Best,

Beth Canova

Managing Editor

About the Contributor

Beth Canova is a veteran of the publishing industry, specializing in cryptocurrency-related information and guidance. As the Managing Editor of some of world’s most astute cryptocurrency experts — Juan Villaverde, Dr. Bruce Ng, Marija Matić and others — she's continually immersed, and well versed, on everything crypto.

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