Earlier this year, China launched what is widely regarded as the world’s largest crypto crackdown so far. In the past, the nation has had a turbulent history with the crypto realm, issuing a variety of restrictions. However, the ferocity of its previous crackdown drove miners out of what was dubbed the ‘mining crypto capital of the world.’
The crackdown’s effects on the market were also felt strongly. Bitcoin had reached its all-time high at that moment in April. However, after the crackdown, the digital asset’s price plummeted, bringing the larger cryptocurrency market down with it. The market has suffered as a result of the crackdown, which saw over 50% of the hash rate destroyed.
However, it seems as if China’s leadership is reconsidering its position on the crackdown. China’s National Development & Reform Commission has launched a new poll, seeking public feedback on the country’s recent ban on crypto mining.
The survey will run for a month. Following that, the survey’s data will be compiled. China has made no indication on what it intends to do with the information after the poll’s conclusion. However, there are suspicions in the sector that the government is beginning to reconsider its formerly tough position on the crypto industry.
A Mistake That Cost A Trillion-Dollars
When China first began cracking down on crypto mining, CEO of MicroStrategy, Michael Taylor, openly warned that the state was making a ‘trillion-dollar mistake.’ According to Bloomberg, the nation was clamping down on a property that earned $10 billion in annual revenue and grew at a pace of 100% year over year.
Prior to the crackdown, China controlled over 50% of the bitcoin marketplace and had a thriving crypto sector. China’s hash rate plummeted to zero as a result of the crackdown, while other nations took full advantage of the chance to invite miners to their borders.
USA Now Pursuing Cryptocurrency Dominance
Following their flight from China, the relocated miners quickly found themselves in need of new, attractive places to establish their cryptocurrency mining operations. The United States wasted no time grabbing the chance to reintroduce itself to the miners. Numerous states in the USA, including Florida and Texas, enacted advantageous legislation to encourage miners to their territory.
It has seemingly paid off since the US currently boasts the world’s greatest hash rate. Although it is still far behind China’s peak prior to the shutdown, the North American hash rate has been increasing continuously since then. Currently, the USA accounts for 35% of the global total hash rate, up over 16% from April 2021.