Mike Novogratz said that China’s outflow of large miners may be a “big net positive for the ecosystem”-blockchain news, opinions, TV, and work

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A major shift in location may actually be beneficial to Bitcoin, as major miners are now leaving China after China’s crackdown on Bitcoin mining. Mike Novogratz, CEO of Galaxy Digital, echoed the opinions of other experts and said that the migration to different places on the planet could be a positive development.

Novogratz mentioned on Bloomberg that China’s crackdown on almost everything, such as banning mining, banning leverage, and even banning Bitcoin in some places, has not had that much impact on Bitcoin. “It still exists, it survived,” Novogratz said. He even said that the move of miners out of China may be “a huge net benefit to the ecosystem.”

Novogratz even calls the entire crypto ecosystem a powerful system. He may have mentioned that the price of Bitcoin has fallen by 65% ​​recently, but at the same time the token has not fallen below the $25.000 mark. “We have a crash, we don’t have a crash protection team. We have no litigation. The system works as expected. This is a very powerful system that was built in a short period of time.”

Novogratz also believes that Bitcoin has opened its own path to digital gold. He reminded the audience that gold has existed for 3000 years. He expressed his unwavering trust in Bitcoin and said: “I expect Bitcoin will become the digital version of gold in the next 3000 years.”

Bitcoin mining itself is an energy-intensive process. So far, it has been mainly carried out on Chinese territory. China has long been home to half of the world’s bitcoin miners. Now Beijing wants them to leave, and many of them may move to Kazakhstan, where there is cheap electricity and a crypto-friendly government.

But what’s more interesting is that now Texas seems likely to become a new hub for Bitcoin mining, a real game changer in the region, and now Shenzhen company BIT Mining plans to invest 26 million US dollars to build a 57 MW data there. center. Thanks to its abundance of solar and wind energy, unregulated markets, and crypto-friendly political views, Texas may also become an ideal destination for miners. Some energy prices in Texas are among the lowest in the world, and its share of renewable energy will only increase over time.

Cleaner and more environmentally friendly Bitcoin mining may be a good reason for big companies to invest in Bitcoin in the future, which may increase its value.



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