The Impact on Chinese Crypto Ban on Crypto Market and Crypto Mining
What is happening?
On Friday, September the 24th, The People's Bank of China effectively banned all financial activity related to cryptocurrency. The Chinese government has limited cryptocurrency-related operations since 2013, prompting crypto mining rigs to move overseas. However, the latest ban appears to be final. The decision on the policy is motivated by many factors, including China developing its digital central bank currency, e-yuan. The Chinese government is cautious about decentralization and financial freedom brought by blockchain technology.
How will the ban impact the United States?
The Chinese ban can impact the volatility of the cryptocurrency market in the United States, meaning that you should invest in cryptocurrency only when you can afford to lose. Some believe that this ban indicates the ongoing trend, and governments worldwide are likely to begin regulating the previously unregulated and wild crypto market to make it a legitimized part of today's economy.
Chinese mining companies have been moving overseas, primarily to other countries in East Asia, but it would not come as a surprise if some decide to land their feet in the United States as well.
In the short term, the crypto ban can be a good buying opportunity for the most popular cryptocurrencies, such as Bitcoin and Ethereum, because the price on them often falls immediately after the ban happens. Note that the buying opportunity is really short as crypto tends to recover extremely fast.
The Chinese ban would not hurt the digital currencies in the long term, just like the previous bans have not hurt them. Just like before, the perfect time to jump on the cryptocurrency trend is right now, so if you always wanted to set up a crypto mining rig, do it right now.
Where to mine? Consider crypto-friendly U.S. states
The situation in China makes us appreciate the smooth grounds for cryptocurrency mining that exist in the United States. While the United States is crypto-friendly in general, some states are friendlier than others when it comes to crypto. Many U.S. states have passed crypto-friendly bills in recent years. For mining, one of the best states is Texas because there are no money transfer licenses required in the state to sell Bitcoin or other digital currencies. The mining in Texas is the most cost-efficient compared to other states. For crypto businesses larger than a single mining rig, the best states are Colorado, Ohio, California, and Wyoming. California also scores best in cryptocurrency consumer protection.
One factor that is likely to dominate cryptocurrency discussions and developments is the search for green crypto mining. While financially-wise, crypto presents great opportunities, there are many concerns because of the significant carbon emissions produced by crypto. Luckily, the U.S. has a fantastic potential for green crypto mining. The experts see Oklahoma as the state that may lead the green crypto mining movement. The state has cheap green energy that makes it a great alternative to China for sustainable crypto mining.
Setting Up a Crypto Mining Rig in the U.S.
Whether you are a crypto miner from China and thinking of setting up a mining rig or a native using a recent ban as the opportunity to start, you will benefit from buying top-quality gear for your mining rig in the United States. Notably, electrical cables from U.S. manufacturers perform exceptionally well in the setting of a mining rig. At Nassau National Cable, we sell crypto mining cables from the top manufacturers in the country. Click here to check our collection, which includes popular choices for crypto, such as THHN/THWN-2, tray cables, Cat5, Cat 5e, and many others. Nassau National Cable has a dedicated, knowledgeable team that will help beginner and experienced miners discover the best wire and cable solution for their respective mining rigs.
