Chinese authorities made a big mistake by tightening regulation of mining and crypto trading, MicroStrategy CEO Michael Sailor said in interview Bloomberg. According to him, China had a 50% share of the bitcoin mining market, which generated about $ 10 billion a year, writes RBC Crypto.
China’s Bitcoin crackdown will be a “trillion-dollar mistake.”
MicroStrategy CEO Michael Saylor talks to @emilychangtv https://t.co/Eu4ZAUjjhD pic.twitter.com/AJ951tFr39
— Bloomberg Technology (@technology) June 25, 2021
“Given the rate of growth of bitcoin, this would be a trillion dollar mistake,” said Sailor.
The head of MicroStrategy noted that the exodus of miners from China will benefit North American cryptocurrency mining enterprises, which have already begun to receive 50% more profit due to the fact that Chinese miners turned off their equipment.
Sailor claims that due to the need to move and transport equipment to other countries, Chinese miners were forced to start selling the mined cryptocurrency. This is what led to the surge in volatility in the crypto market that was observed last week, says Sailor.
MicroStrategy is the largest cryptocurrency holder among publicly traded companies. The last time the company bought 13 thousand bitcoins for about $ 489 million, it happened on June 21. Currently MicroStrategy owns 105 thousand digital coins.
Chinese authorities have called for stricter regulation of mining and crypto trading in May. Since then, a ban on cryptocurrency mining has been introduced in four provinces of China (Sichuan, Yunnan, Qinghai and Xinjiang), and banks and other financial institutions in China have been banned from conducting operations related to cryptocurrency.
The vice president of mining company Foundry said that already about 70% of Chinese cryptocurrency mining enterprises have stopped operations and turned off equipment.
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