Home » MicroStrategy head reveals China’s trillion dollar mistake

MicroStrategy head reveals China’s trillion dollar mistake

by archyw

Michael Sailor believes that the withdrawal of miners from the PRC will benefit cryptocurrency mining enterprises in the United States, which have already begun to receive 50% more profit.

Chinese authorities made a big mistake by tightening regulation of mining and crypto trading, MicroStrategy CEO Michael Sailor said at interview Bloomberg. According to him, China had a 50% share of the bitcoin mining market, which generated about $ 10 billion a year.

“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 have 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. Last time company bought 13 thousand bitcoins worth 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 the mining of cryptocurrency has been introduced in four provinces of the PRC (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 enterprises for the extraction of cryptocurrencies have stopped operations and turned off equipment.

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You can find more news about cryptocurrencies in our telegram channel RBC-Crypto.

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