According to MicroStrategy CEO Michael Saylor, China committed a trillion-dollar blunder by expelling Bitcoin miners from its borders.
The famous BTC bull discussed the negative short-term consequences of China’s new restriction on Bitcoin mining in a recent interview with Bloomberg. While Saylor recognized the drop in hash rate and price, he feels the Asian country’s “error” will create a good chance for others.
This year, the world’s most populous country tightened its grip on the bitcoin market. The Asian Superpower deliberately targeted Bitcoin miners, ordering them to halt operations due to environmental concerns.
As the country with the highest proportion of BTC mining, these measures immediately impacted the network. Not only did prices drop, but the hash rate also dropped to a multi-month low.
According to specific sources, some miners migrate to other countries like Kazakhstan and the United States, but this will take time, so the metric does not recover while waiting for future difficulty adjustment.
In an interview with Bloomberg, Michael Saylor brought up this troubling issue, claiming that the price reductions are due to Chinese miners being compelled to liquidate their holdings.
He described China’s choice to evict miners as a “trillion-dollar blunder” for the government, but one may create chances for others.
“China had a 50% market share of Bitcoin, and they were generating $10 billion a year and a business that was growing 100% year over year. And then, the government cracked down on it and squeezed the entire industry out of China. I think that given the growth rate of Bitcoin, this will turn out to be a trillion-dollar mistake for China.”
Even though a country as powerful as China could afford to make a trillion-dollar error, he called the move a tragedy.
Nonetheless, the low prices provide Western investors, including the business he leads, a fantastic opportunity to buy more shares of the asset at a discount.
North American Bitcoin miners, according to Saylor, will gain from this since their costs remain the same, but they will produce 50 percent to 75 percent higher income for a long time.