China's crypto news of the week (April 11 to April 25)

Highlight of the week: Li Bo, deputy governor of the Central Bank of China, at the Boao Forum on April 18, said that crypto assets such as Bitcoin should be used as investment tools or alternative investments. This is the first time that the Chinese government has recognized the asset value of cryptocurrencies.

China has long recognized the status of Bitcoin as a virtual commodity but banned any ICOs and exchanges, the whole policy is still relatively negative. Li Bo: crypto assets are an investment option. It is not a currency in itself, but an alternative investment product. China is studying regulatory policies. Before we figure out what regulatory rules are needed, we will continue to maintain the current measures.

However, the former president of China central bank Zhou Xiaochuan also stated at the Boao Forum that digital assets must serve the real economy, implying its opposition to cryptocurrencies and thinking that they have nothing to do with the real economy. Zhou issued a serious, suggestive warning to Li Bo's relatively positive statement on cryptocurrencies.

WuBlockchain: Li's statement is a small improvement, but its value should not be overestimated. China’s policies are highly uncertain. However, in the foreseeable future, the legalization of Bitcoin in China may be possible.

Read more: https://new.qq.com/omn/20210419/20210419A020EQ00.html

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1. The hashrate of Bitcoin mining pools plummeted in 24 hours. Antpools fell by 24.5%, BTC.com fell by 18.9%, Poolin fell by 33%, Binance pools fell by 20%. The reason is that there was a coal mine explosion and Northwest China is undergoing a complete blackout for safety inspections.

WuBlockchain: There are indeed some government policy uncertainties in China's Bitcoin mining, but China has better infrastructure, electricity bills, maintenance network, and labor costs. Although the mining industry is shifting to the United States, China may still maintain a Hashrate of 40-50% in the future. If the Chinese government suddenly declares that Bitcoin and mining are legal, China's funds may increase its hashrate to 80% or more.

2. Mining projects other than Bitcoin are developing wildly in China.

China's IPFSUnion announced that it will invest $1.3billion in Filecoin mining. IPFSUnion has received tens of millions investment from local governments and Fenbushi Capital. Their goal is to deploy one million mining machines globally in next five years.

Bitmain said its new Eth asic machine E9's hashrate is about 32 3080 graphics cards, which is about 3200M. However, due to the shortage of related accessories, almost none of ETH asic machine can ship in large quantities in a short period of time.

Chia, known as Green Bitcoin, has caused a shortage of mechanical hard drives in China.

WuBlockchain: If you want to attract countless funds, miners and investors from China, you can consider doing a POW or POC project.

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