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Could A Mining Ban Raise Bitcoin Prices? | Crypto Briefing

Higher Mining Costs Could Raise Prices
China accounts for around 74% of the Bitcoin network’s total hashing power, as Bitcoin Magazine has reported. This is largely due to the availability of cheap electricity, which allows Chinese miners to sell their mining rewards at a lower price, undercutting their competitors abroad.

A Chinese mining ban would likely cause mining to shift to other countries, where energy costs are higher. Since Bitcoin prices correlate strongly with the average cost of mining, prices would likely rise to match the increased cost of production.

Bitcoin Would Be More Decentralized
There has been much worry in the crypto community that Bitcoin is becoming centralized, due to China’s overwhelming presence on the network. This is a favorite point among Bitcoin critics, including Ripple CEO Brad Garlinghouse.

However, fears that China could wage a 51% attack on Bitcoin are exaggerated. In order to control 51% of the Bitcoin network, it requires a significant of time, energy (literally) and money to acquire an maintain that position.There is little financial incentive to spend billions of dollars controlling bitcoin only to throw them away by crashing the price.

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Could A Mining Ban Raise Bitcoin Prices? | Crypto Briefing.