Crypto Community Continues Reacting to China’s Sweeping Crypto Ban
He may or may not be able to join us later on in the show hes having a few wi fi difficulties, but christy youre. My tech, expert and weve got a lot of tech questions for you. So um lets start off with well china, um weve had continuing fallout from china throughout this week. Taking a review of whats happened over the past several days. The authorities in chinas inner mongolia province seized about over 10 000 crypto mining rigs from a government operated tech park and thats according to global media, who will be global, will start serving existing will stop serving existing users in china by the end of the year, and We had bobby leon whos the co founder of the first bitcoin exchange in china, uh btcc. It was formerly called um. He was telling us that over the counter trading desks will likely be the next loophole to close in china and on top of that alibaba theyll. Stop selling specialized mining equipment on october, 8th theyve announced and at least 18 more crypto platforms and companies are exiting china following a nationwide crypto ban and just uh since were listening. Bitmain theyre a leading mining manufacturer, of course, and theyre going to halt sales in china and move most of their production out of southern china and into other countries. So i mean what do you see as the fallout? Are we just going to have no bitcoin market in china, anymore, thats hard to say if were gon na have no bitcoin market in china? Uh bitcoin does manage to flourish in uh adverse situations um what we can see right now, though, the hash rate of course has moved out of china with the all of the mining crackdowns.
Even the miners now who were sort of surreptitiously turning their machines back on are uh finding that theyre gon na get their rigs confiscated. Um people are looking a little more closely at whats going on in those situations, but it is a situation that has been growing for the last what six months – and this is not entirely a surprise to everybody. People have been the miners and other uh businesses in china. Bitcoin related businesses in china have been exiting the country and relocating their hash power. Weve uh talked in recent weeks also about how the north american uh north american mining industry is growing theyre, benefiting from having seen maybe seen some of the writing on the wall, but also just recognizing the economic value of setting up mining industry. Setting up the mining industry in north america and elsewhere, so those orders are starting to come. Online theyve been delivered, people are firing up their rigs and the hash power is staying, steady on a global rate and thats the important thing, because hash power is the computational power that secures the bitcoin, blockchain and bitcoin is still secure. Well, thats. What uh some experts were telling us earlier on the week that even without china, it you know it, there still might be some chinese citizens who might have a way to operate in china with uh severe limitations and restrictions, but even without the mass market that china Has provided to bitcoin its still in emerging markets in other countries around the world, uh theres, still more mass adoption throughout the globe, and so much like the world has internet yeah.
I mean china has an intranet and they may have a private blockchain, their digital yuan and much like apple and microsoft and and tech companies have tried to operate china with limitations they that might happen in the case of uh blockchain companies trying to work in china. Uh we did have dominic uh dantes, just for the slightest moment there uh, we hope to get back with him to talk about price if hes able to log on back with us. But another topic, of course, is el salvador, and this has been truly fascinating to watch uh tweeting uh today that 2.73 million people already using the chivo wall at the government run wallet there, 180 new users every minute users, not downloads, and one million dollars in remittances. Being received every day, uh, hashtag bitcoin, of course, now the population of el salvador is about six and a half million. So you know earlier reported about one third of the country is using this shiva wall and now its approaching half a million. I mean rather half of the population of the country, so i mean tell me a bit about what you might what you know about the shiva to the chivo wallet christy, because ive also heard that there are some glitches with it, its not a very straightforward process For everyone, i think i think that there are a lot of bitcoiners who would say that the chibo wallet is sort of what you get when you have a government stepping in and and trying to uh trying to do the things that private companies can probably do Better, i dont know, but there have been glitches and there are.
There are always glitches when youre going to try something new. I think that one of the best takes that ive seen on the situation in el salvador came from our uh from michael casey at coindesk. He wrote a really fantastic op, ed about how el salvador is getting things wrong, um in its approach, and i think that there is hope that that perhaps things could be on the upswing. There are three theres like we said, theres over a third approaching, a half of the the population has an active wallet, not just downloads. That i think, also has to be taken with a grain of salt, because is it just that these people are using their wallets? In order to access the air dropped bitcoin 30 worth of bitcoin, that was air dropped into those wallets. Are they actively using the wallet just to get the bitcoin out cash in for us dollars? There have been long lineups at bitcoin atms and i dont think its because people are trying to buy more bitcoin, theyre, probably trying to cash it out as opposed to using it in the circular economy, fashion of using their bitcoin that got air dropped in order to Exchange it for goods and services and those people, then exchange it for goods and services and so on and so on and creating that sort of internal bitcoin economy. On the other hand, the i the the notion that there are all these remittances being done with bitcoin.
That is a positive sign, because that is kind of what we were hoping bitcoin could be used for in a lot of these developing countries. But i think one of the cooler stories actually coming out of el salvador is more the uh, the volcano node yeah volcano bitcoin right, but here we go. This is vo. Lets play that this is not weird honestly. This is not the weirdest thing to actually happen. If you think about it, okay, so geothermal power plants use steam, they use steam to protect, produce electricity. We need electricity to run the mining rigs and where are you going to get some really great geothermal power? A volcano for crying out loud and you dont, have people setting up, say, villages necessarily or big cities on the sides of volcanoes. So, as i mentioned before, bitcoin miners can situate their rigs anywhere in the world, no matter how remote anywhere that there is an energy source and theres a whole lot of renewable energy out there. Electric power, hydroelectric power, solar, wind and, in this case volcanoes and thats. What el salvador has begun to do, whats important to note about these remote locations is that the energy being tapped, specif is being tapped specifically to mine bitcoin. It cant be used for say powering a city, because cities right now are too far away from that source and remember that energy dissipates, as it travels so setting up a bitcoin mining center beside a volcano far away from civilian populations, is a great way to source.
Not just energy but bitcoin bitcoin revenue. So how does this even work so by creating geothermal power, geothermal power plants, drill down a few miles below the earths surface, and using enhanced geothermal systems use steam to produce electricity. The steam rotates a turbine that activates a generator generator and that produces the electricity. So its not like you know, lava somehow is magically turned into energy. Theres theres a generator involved um so and as michael casey points out in his op ed mining bitcoin could be a really good way for countries like el salvador with plentiful stranded, volcano energy to generate revenue from renewable energy sources and then use that money to fund. More bitcoin focused projects which would help not just the bitcoin economy grow, but the entire countrys economy grow and what were seeing so what happens if the volcano erupts, though, if the volcano erupts youll lose a few rigs, but youre not going to have like a whole Population youre not going to have a whole city, getting leveled youre, going to get a few mining farms getting leveled, maybe and with the who knows, with enough geological uh, uh prediction systems, perhaps theyll know that theres something happening and they can load up some rigs on A truck i dont know, but i mean its a its a chance. You take right, but its not like its a whole city or mine.