The Zap Protocol is one of the first Bitcoin-centric exchange platforms in the world. The co-founder of the project, Nick Spanos, was interviewed by the crypto-journalist recently. Spanos made important remarks about the ongoing clampdown on the mining community in China. The government of China has expressed some reservations about the financial risks posed by digital assets.
The intelligence agencies in China claimed that many mining rigs were powered by illegal sources of energy. At first, the local social media platforms and search engines locked the cryptocurrencies out of the system. Meanwhile, provinces with the largest saturation of mining enterprises like Sichuan, Xijiang, Yunnan, Inner Mongolia, and others imposed a crypto ban. As per Spanos, the Chinese ban has done more good than damage.
According to Spanos, the first and more crucial impact of the China ban is proving that the crypto market is strongly rooted. He further explained that if the second largest and most influential economic force in the world has not been able to take crypto trading out of commission, there are not many powers that can make it happen.
Commenting on the scarcity of Bitcoin in the world due to the relinquished supplies from China, he claimed that it was only a temporary shock. Since the Bitcoin algorithm amends itself every two weeks, that allow the blockchain to conduct one block transaction per 10 minutes. He further added that miners now have to deal with less friction and can generate greater profits.
China’s Ban on Cryptocurrency is Good for Miners
Before the ban was imposed, China made up for 65%-75% hashrates contributions for Bitcoin. According to Spanos, the miners in China will be seeking to move the neighbouring regions like Iran, Kazakhstan, and USSR. Following along the lines, one of the biggest mining projects in the region- IBS Group has decided to move their operations to regions like Canada, Iceland, UAE, and United States.
Taking about the price movement, Spanos claimed that whenever a major regulatory setback has gone neutral, the Bitcoin price has moved up in ranks. He is not alone in his optimistic views about the Bitcoin market appreciation. Mike Novogratz, CEO of Galaxy Digital, claimed last month that the ban on cryptocurrency in China is a good omen and a big net positive for the crypto mining industry.