Power Outage in Xinjiang Disrupts Bitcoin Mining
In a shocking twist of fate on April 16th, a power outage in Xinjiang put the brakes on Bitcoin mining, causing the BTC hash rate to plummet. Local reports indicated a staggering drop among major mining pools: Ant Mine Pool suffered a 21.93% decrease, BTC.com fell by 18.5%, Binance Mine Pool was down 22%, and Huobi experienced a 25.5% dip. This downturn has been linked to heightened safety inspections following a mishap in a local mine. With western China being a hotspot for miners due to cheap electricity and real estate, the repercussions are significant. Miners initially speculated that the impact would last only one to two days, yet the hash rate has failed to recover, currently hovering below 145 million TH/S—down from a peak of 172 million before the incident.
The Dogecoin Surge
Meanwhile, in the land of memes and dogs, Dogecoin experienced a meteoric rise, skyrocketing a staggering 370% within just one week. Purchases on OKEx and Huobi, which accounted for 16.9% and 15.9% of global trading volumes respectively, played a pivotal role in this boost. Surprisingly, Binance managed only a meager 5.2%. This trend underscores a stark difference in perspective between Chinese buyers, who often evaluate investments by potential gain, and their western counterparts, who are more inclined to create memes about their assets instead of investing.
Trademark Tango Over Dogecoin
The Dogecoin hype train continued its force with a quirky trademark battle. Two tech companies in Shanghai and Changsha have submitted applications to register the Chinese version of Dogecoin, aptly named ‘Dog-Coin.’ According to Tianyancha, the process is currently under substantive review. One can only imagine how a successful trademark might pave the way for new dog-themed products, such as plush toys, accessories, or even doggy treat dispensers!
Foraging for New Leadership: Binance’s Executive Shuffle
In the executive realm, Binance has ushered in a new head for Greater China, amid ongoing changes to its leadership roles. This decentralized company has been known to keep many of its operations shrouded in secrecy since moving its headquarters out of China in 2017 due to regulatory upheaval. However, the allure of the Chinese trading market remains undeniable, with a significant concentration of enthusiastic traders who keep the digital currency wheels turning.
A Shifting Stance on Cryptocurrencies
As DC and cryptocurrency enthusiasts dissect the recent developments, the deputy governor of the People’s Bank of China, Li Bo, sparked conversations with his comments at a conference. He noted that the bank considers Bitcoin and stablecoins as viable investment options. Given China’s history of being tight-lipped on crypto policy, this signals a substantial shift in Beijing’s approach, or at least the potential for one.
The Potential Pitfalls of Digital Yuan
However, it’s not all moonwalking and dogecoin; the introduction of the digital yuan could have unforeseen consequences, particularly for Macau’s gaming sector. If it becomes harder to launder illegally obtained funds across borders, the region—which relies on the mainland for a significant portion of its foot traffic—could find itself in a tight spot.
China’s Digital Influence on the Global Economy
Finally, a bit of a diplomatic touch was added to the narrative when a former governor of the People’s Bank of China warned that imposing digital taxes might ignite a tariff war. At the Boao Forum for Asia, he championed China’s growing footprint in the digital economy, emphasizing multilateral collaboration. This move could further leverage China’s economic clout in neighboring countries, especially with the rising infrastructure for digital yuan.
