A Glance at the Widespread Hashrate Decline with China Mining Crackdown Reveals Why ViaBTC can Shield Its Mining Pool from Wild Swings
Since the birth of cryptocurrency, debates about the factors that hold back the development of the industry have been ever-growing. In recent years, it has dawned on people in this field that the greatest restriction on the cryptocurrency industry is not technology, but regulation, which is like the Sword of Damocles hanging over the head of the sector and threatening to behead it at any time.
Mining crackdown makes the hashrate of the entire network volatile.
A decree issued on June 19, 2021, sent the entire cryptocurrency world on the verge of collapsing. Miners had an extremely memorable night that day: Sichuan, the world’s largest Bitcoin mining hub, began to shut down mines on the order of local authorities, following Inner Mongolia, Qinghai, Xinjiang, and Yunnan. This signaled that the sword hanging over the head fell. The heated discussions about mining regulation have finally settled for the time being. Some say that although this policy is targeted at the mining world, the ensuing impact is so far-reaching that it reminds people much of China’s massive ban on initial coin offerings on September 4, 2017. In the face of the ongoing crackdown, many miners could do nothing but turn off and relocate their mining rigs overnight reluctantly.
The rush to shut down mines by order has plunged the entire cryptocurrency industry into a hashrate decline. According to the data from the BTC.com explorer (at 11:00 a.m. on June 20), F2Pool saw its hashrate shrinking by 14.19%, BTC.com by 15.66%, Binance Pool by 24.62%, Huobi Pool by 26.71%, and AntPool by up to 29% within 24 hours. By contrast, ViaBTC, another leading mining pool, only lost 2.37% of its hashrate within 24 hours.
At a time when the top ten mining pools in the world broadly suffer a hashrate drop of 15% or even over 20%, ViaBTC manages to maintain its Bitcoin hashrate at a stable level. This is a pleasant surprise for ViaBTC users. After all, the hashrate stability at least guarantees the normal block generation. By comparison, other mining pools are likely to experience a revenue decrease due to the unstable hashrate. For ViaBTC miners, there is some curiosity, mixed with their delight, about why ViaBTC can insulate itself from the ongoing hashrate drop that has swept the overwhelming majority of its peers.
This is large since ViaBTC embarked on a path of international development two years ago. It is by sheer persistence in the path that the company has migrated the bulk of its hashrate overseas, thus leaving itself seldom under the sway of policies in China. Therefore, ViaBTC manages to survive the devastating regulatory storm nearly unscathed.
ViaBTC: Moving early to embark on a path of international development
ViaBTC began to march into overseas markets two years ago. Remaining steadfast in the path of an international operation, it has established posts and increased staff to forge a team aligned with globally recognized professional standards. At the same time, ViaBTC keeps keenly aware of market needs and strives for perfection in products. As a result, it has rolled out a full package of products and services that are in the better interests of miners. For ViaBTC, such a precise grasp of general trends is derived from the thorough understanding of the industry by its decision-makers.
As we all know, cryptocurrency is still in its infancy. Due to its complexity, particularity, and flexibility, countries around the world will continue to hold a divided opinion on the industry in the short term. Unlike traditional stocks and funds, cryptocurrencies are not constrained by such factors as regional regulation in their development. Instead, they are connected globally and operate 365 days a year. In the absence of an effective regulatory mechanism, big price movements provide endless opportunities for value investors but drag short-term speculators into hell. Because of the mixed reception and severe doubts, it still has a long way to go before the cryptocurrency industry to gain widespread popularity.
As early as 2019, when the industry set its eyes on such development directions as public chain ecosystems, blockchain games, and centralized exchanges, ViaBTC’s decision-makers acutely discerned the course of development the industry would take in the future and the unavoidable regulatory constraints facing it throughout the process.
On the one hand, ViaBTC began to integrate industry resources and channels. Relying on its own advantages in the industry, the company took proactive moves to extend its business presence overseas in exchange for the expanded market coverage. On the other hand, it continued to optimize and upgrade its products. A wide product lineup was forged to meet the increasingly diversified and international market needs.
As one of the world-leading, integrated digital currency mining pools, ViaBTC now provides a full package of professional, efficient, secure, and stable digital currency mining services for nearly one million users in over 130 countries/regions. With unparalleled technologies and considerate services, it has won a good reputation and accumulated an abundance of operating experience across the mining industry within a short period of five years since its birth.
Additionally, ViaBTC also pursues an innovation-driven approach. By marrying cutting-edge financial concepts with market trends, it has created a series of efficient, convenient, and flexible financial assets management products. As two examples of these products, [Hedging] and [Staking], built on the logic that underpins traditional finance, can trade time for space to maximize the value of investment assets.
Concerning assets management, ViaBTC Pool supports the automatic withdrawal of mining income. Its efficient and convenient functions free miners from the fear of sharp asset devaluations under extreme market conditions. All mining tokens can be automatically converted into USDT and BTC on the automatic exchange page. Considering the volatility of the cryptocurrency market, the ViaBTC technical team sets such conversion for once in an hour. Miners can also manually convert the income into tokens for accumulation if needed. Diversified products and services have inevitably made ViaBTC an international platform, which in turn consolidates its leading position in the digital mining industry.
The recent clampdown policy is unquestionably a turning point for the digital currency mining sector since it has accelerated the reshuffle of the industry-leading mining pools. However, it ushers in a brand new era for ViaBTC, which has been geared up for all critical changes in the industry, by opening up channels to overseas markets.