Chinese Ethereum Mining Pool BeePool to Shut Down Following Crypto Ban
Look at that, okay! Well, you cant read this card gotten so much feedback this morning uh. I kind of wish i didnt wake up today. Okay lets talk about bee pool, lets talk about more ethereum mining, so the little world of ethereum mining is not interesting to most folk, but i find it interesting and recently weve had a lot of news in this really small sector, so ether, mine or im. Getting so confused now, spark pool and bee pool are two ethereum pools located in china, and they both have shuttered services spark pool, announced yesterday that all international clients will have to find a different pool by the 30th september b pool followed up today and said by October 15th, everyone on their account will also have to find a different pool to use, so that makes up about 26 of all ethereums hash rate. So a few things just to clear up that doesnt mean that ethereums hash rate is going away. It means that all the miners who subscribe that pool are going to have to find another pool to use. What this kind of indicates, though, is that the chinese government is cracking down on almost every single sector of the cryptocurrency industry, so we have some really nice reporting from oyashin on coindesk last week, talking about uh kind of clamping down the gray zones of cryptocurrency industry. In china, which would include crypto to crypto transactions and thats, why these pools are trying to shut down because they kind of operate in that sense, you know theyre, not an exchange theyre, not miners themselves, but they do transfer mining profits to miners, which is a crypto Crypto transaction and they dont want to be attacked by the chinese government, so theyre shutting down their services spark pool was founded in 2016.
b pools also, i think 2018, but dont quote me on that. So older legacy pools that are choosing not to operate anymore. Shutting down their services completely, so they dont get rigged up by the authorities. Pretty interesting story, just continued pressure on the chinese front. Jen. I wont throw this to you when you see all this happening, whats your thought. Well, i i mean im still kind of forming my thoughts around im, not laughing at you, im, not laughing at you, its just funny that you threw it to me im still forming my thoughts around this i mean when i look at your chart. Those are two major pools so, where, where are these miners going to go? Tell me yeah, so mining is very decentralized. Its almost like a node network. There we go thats beautiful chart size could be a little larger okay, so miners operate wherever and ethereum miners are often gpu miners, which a lot of like your gamer nerds out there. They turn off world of warcraft and they flip the switch and then theyre mining ethereum, and you can kind of make some passive income that way how you mine. Is. You then point that energy from your computer towards a mining pool, which is basically just a url, can do a little connections there boom. You have ethereum streaming to your wallet, spark pool, b, pool, and maybe others well see have to shut down because the chinese governments coming after them.
So basically, it just means that were going to have different pools pop up thats, going to take that hash rate were also seeing services that spark pool and bpool offer are going to go away. For example, spark pool offers gas now, which is a really popular tracker. D5 ecosystem for understanding gas networks. They also offer something called tai chi network, which is like a private transaction network, for if you really want to get some stealthy, ethereum profits so were just seeing like just in general, a larger crackdown on ethereum or just the cryptocurrency. In general, in china so less to do with mining here and more to do with the general cryptocurrency industry. Zach get your thoughts on this one ive just been. Imagining will foxley at like a senate hearing like on in dc, like at some future date and hes up there. Hes got his chart. Hes got his big charge like on the board, like on the little easel and hes like pointing the chart. Hes got the stick. Hes got hes, got the laser pointer and hes just making the facts known on crypto mining and then jens gawking in context, yeah and then theres like the buy bitcoin guys yeah anyway thats all. I was thinking about this whole time, just uh just that. Just that mental image is what came to mind um thats it thats it. I mean, i think it i think you know we saw this yesterday were seeing it again today, um, you know, the ripple effects of these of this latest crackdown are like are very far reaching and i think thats why its not easy to discount this.
As oh, this is just a recycled china fud. This is actually uh a bit different, i think, were seeing some of the ramifications uh a bit more quickly than we had in the past, so great to be flagging. Sort of the latest developments on that front. For sure, totally naomi lets get some ill mention that original thoughts um so its interesting. You know some miners had quietly resumed ethereum mining operations in china after the crackdown in may, and i wonder how many times thats going to keep going, whether each time theres a ban. Maybe people are scared off to start off with and then just quietly. They re enter because there are a lot of people in china who are big risk takers and theres a lot at stake. You know if they cant operate this global financial system. Apparently a lot of their choices are being curtailed. So um, your bitcoin ethereum crypto at large offers tremendous opportunity for these people, which may be worth taking tremendous risks. So, even if the government is cracking down like it is difficult for the government to enforce this uh a total ban, so they are going to be big gaps in their surveillance system of cryptocurrency of mining of all of this, and i think that as people start To figure out what those gaps are theyre going to start to take advantage of them and china is going to be back in the game, but just under the radar uh.
Just because this stuff is too important and its too valuable to the people there, but ill. Throw this back to you well yeah last thought before we toss it to zach for this nice revolut scoop uh its interesting that the ethereum community has put a lot of time and energy into the chinese market. For instance, vital quatern taught himself chinese while inventing ethereum like he was doing both at the same time, and he would go over to china quite often hes wild. Just to think about that and hes put a lot of time and effort into building up these chinese communities. A lot of these chinese ethereum communities were mining based they werent necessarily always based on the trading side or other aspects. They were based on the mining side because i was like more approachable for them. Now.