What Could the International Crypto Mining Crackdown Mean for North American Miners?
China's crackdown on cryptocurrencies is seen as a significant misstep by MicroStrategy's CEO, Michael Saylor, which has instead greatly benefited North American Bitcoin miners. The move by China, which once held a 50% market share in Bitcoin, has now provided a financial windfall for miners outside China. Companies like MicroStrategy were able to capitalize on this shift and purchase Bitcoin at advantageous prices.
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Key takeaways
China's cryptocurrency crackdown is projected to be a trillion-dollar mistake.
North American Bitcoin miners are experiencing increased revenues due to China's exit.
The market shift allows companies like MicroStrategy to purchase Bitcoin at favorable rates.
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According to MicroStrategy Inc. Chief Executive Officer Michael Saylor, China’s crackdown on cryptocurrencies could become a “trillion-dollar” mistake, and has already brought a windfall to Bitcoin miners in North America. Listen to his thoughts on this and more below.
“it’s a great windfall for North American Bitcoin miners”
Host: Let’s talk about the crackdown in China on bitcoin, on Bitcoin mining. What does this mean for the longer term?
Saylor: Well, China had 50% market share of Bitcoin and they were generating $10 billion a year and a business that was growing 100% a year, year over year. And the government cracked down on it and they eliminated the entire industry out of China. I think that given the growth rate of bitcoin, this will prove to be a trillion dollar mistake for China. So it’s a tragedy for Chinese miners… and so that’s been a big opportunity for Western investors. Companies like mine (MicroStrategy Inc.) bought Bitcoin in the $30,000 range. We would have paid double, maybe triple to buy the Bitcoin if it hadn’t been for the China exodus. So we got a benefit from that. And it’s a great windfall, Emily, for North American Bitcoin miners, because their costs are the same and they’re going to generate 50% more revenue or 75% more revenue for quite a while because the Chinese industry has been taken offline.
*Bloomberg contributed to this content
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