People have said that a lot of technology companies in China are working on making it possible for Chinese soccer fans to watch the FIFA World Cup in the metaverse.
These initiatives are part of a five-year plan that the Chinese government unveiled at the beginning of November with the intention of enhancing the capabilities of and fostering the growth of the local virtual reality (VR) sector. According to a report from the state-run media outlet Global Times that was published on November 20, the video streaming platform Migu is one of six Chinese companies that have secured the rights to show the World Cup. Migu plans to create a “Metaverse-like” space that will allow users to watch a livestream of the game while wearing virtual reality headsets. ByteDance, the company that owns TikTok and its Chinese version, Douyin, has been granted the licencing rights to air the competition. ByteDance’s VR headset subsidiary, Pico, will be offering live broadcasts of the World Cup, and users will have the ability to create and congregate in “digital rooms” to watch the game together. It looks like China’s virtual reality (VR) business, which is still new, is using the World Cup to test out the technology. On November 1, an ambitious industrial strategy was pushed by the nation’s Ministry of Industry and Information Technology, together with four other agencies in the country. Even though China’s five-year plan for 2022–2026 says it wants to improve its virtual reality (VR) industry and ship more than 25 million units worth $48.56 billion, the plan doesn’t say if this goal is for each year or for the whole plan. The plans don’t say anything about whether or not the metaverse would use blockchain technology, like the city of Wuhan’s proposal, which was later changed to remove any mention of non-fungible coins (NFTs). X2Y2 reduces the amount of the optional royalties. NFT marketplace X2Y2 has recanted its opt-in royalties policy and said in a Twitter thread dated November 18 that it would once again impose creator royalties on all current and future collections. In August, the marketplace was one of the first to implement alternative royalties. At that time, it transitioned to a system known as “flexible royalty,” which enables purchasers to choose the amount of the royalty that they would pay. The NFT community responded to it in a variety of different ways.
The Chinese crackdown on mining activities has awakened a lot of decisions and actions. Many miners are already trooping to the US, the new mining hub, to continue their operations. Recently, the NDRC (National Development & Reform Commission) in China seized more than 10,000 mining rigs in Inner Mongolia.
The report even disclosed that the operation was the 45th time that the watchdog has carried such out. Given the losses that miners incur in the wake of these incidents, many forward-thinking companies are protecting their interests.
One of such companies to take proactive action is Huobi Global, a crypto exchange with millions of users, including Chinese citizens. The first step the company took was to restrict the Chinese citizens on its platform.
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Now, mainland china residents can no longer access the platform. As a result, Huobi Global is currently moving funds to fill the withdrawal needs of the clients. Also, it plans to stop all Chinese accounts gradually until December 31.
Miners Move Bitcoin To Support Withdrawal Needs
Huobi Global is occupying the eighth position amongst the largest Bitcoin Pools. However, now that they’ve restricted Chinese citizens, the miners have to move their funds worth $4.21 Billion to meet the withdrawal needs.
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Apart from this Bitcoin fund movement, there were massive movements from Ethereum wallets on September 26, amounting to 800,000 ETH or $2.29 billion from ETH whales.
Related Reading | Miner Refunds The Giant Sum Of 7,626 Ethereum Mistakenly Sent By Bitfinex
The crackdown from the Chinese government is causing havoc in many pools as many exchanges are no longer allowing new entrants. The Huobi Global exchange is amongst the exchanges affected by this development.
A new report from Chainalysis has found that while China’s share of global criminal crypto flows has been falling since the third quarter of 2019, the country still represents a disproportionate amount of illicit cryptocurrency activity.
In its August 3 Cryptocurrency and China report, Chainalysis stated that more than $2.2 billion worth of crypto had been sent from Chinese wallets to addresses associated with illicit activity between April 2019 and June 2021.
Chinese addresses also received more than $2 billion worth of digital assets tied to nefarious activity such as scams and darknet marketplaces. Despite this, the report says crime has fallen significantly:
“China’s transaction volume with illicit addresses has fallen drastically over the time period studied, both in terms of raw value and in relation to other countries. Much of the drop is due to the absence of large-scale Ponzi schemes like the 2019 PlusToken scam.”
Chainalysis added that, “While China remains one of the top-ranked countries for illicit transaction volume, it used to beat all others by a wide margin, suggesting that cryptocurrency-related crime in the country has fallen.”
The authors cite “historical transaction data” as suggesting that Chinese over-the-counter (OTC) Bitcoin brokers “have played an outsized role in facilitating money laundering for those involved in cryptocurrency-based crime.”
The report adds that the “vast majority” of illicit Chinese crypto flows have been associated with scam activity, although digital asset-based money laundering is still “disproportionately carried out in China.”
Chainalysis noted that China’s central government carried out more than 1,100 arrests associated with digital asset-based money laundering in June, indicating a willingness to crack down on the sector.
“It will be interesting to see whether the arrests lead to a drop in flows of illicit funds to China-based cryptocurrency businesses and OTC traders.”
Chainalysis speculates that China’s increasing moves to clamp down on traditional decentralized cryptocurrencies may undermine the nation’s status as a global crypto superpower moving forward.
The report attributes China’s renewed hostility toward decentralized crypto assets to its plans for widespread adoption of the digital yuan.
Related:China’s crackdown signals an oncoming crypto ban, Bobby Lee says
Chinese Bitcoin mining firms BIT Mining and Fenghua International are relocating to the U.S. and Kazakhstan.
The Bitcoin network hashrate has significantly dropped as miners go offline following the ban.
While the short-term effects are negative, the network is witnessing decentralization of the mining industry.
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Publicly-listed Bitcoin mining firm BIT Mining is one of many operations moving overseas due to the ban imposed by the Chinese government.
Another Chinese province pulls the plug on Bitcoin
The mining industry is finally moving out of China.
NASDAQ listed firm BIT Miningshippedits first batch of 320 machines to a new facility in Kazakhstan, with an additional 2600 machines expected before the start of July.
Along with moving operations to Kazakhstan, BIT Mining has also invested in new mining facilities inTexas, which the company claims will mostly run on clean and low-carbon energy.
Additionally, a Chinese logistics firm in Guangzhouconfirmedit is airlifting 6,600lbs of mining machines to Maryland, USA, for another crypto mining firm Fenghua International.
#China logistics firm in Guangzhou confirms to @CNBC it’s airlifting 3,000kg (6,600lbs) #bitcoin mining machines to Maryland, USA. Fenghua International advertises products delivered to door, tax on both ends cleared. Price per kilo: as low as $9.37! #cryptocurrencies pic.twitter.com/8yUjZjhpkk
— Eunice Yoon (@onlyyoontv) June 21, 2021
On Jun. 18, Sichuan, located in the south-west of China, was the latest province to call on miners to stop operating. The shutdown of mining facilities came after the Chinese government in Mayvowed to curb the mining businessin the country citing environmental concerns.
What Does This Mean for Bitcoin?
Since Jun. 19, the total Bitcoin network hashrate has fallen an additional 13%, continuing its downward trajectory since May.
The total hash rate of the network has dropped over 35% from its peak of 180 exo hashes per second EH/s.
However, despite a decrease in the hash rate and price of Bitcoin, there are positive indicators also.
The Bitcoin mempool, a waiting room for transactions yet to be processed, has remained stable. As hash rate decreases, fewer transactions can be processed, putting pressure on existing miners. A stable mempool size indicates that the total mining power comfortably supports all transactions.
The U.S. as a whole is starting to account for more and more of the total network hash rate. During the recent crackdowns in China, American BTC mining pool Foundry USA was the only Bitcoin mining pool to see anincreasein hash rate. It is currently the 6th largest pool on the network, according toBTC.com.
Ulrik K.Lykke Executive Director at Crypto/Digital Assets fund ARK36, commented on increased decentralization and clean energy use, stating:
“As miners spread to other locations, they will likely choose places with secure access to cheap energy sources. As a result, hash rate will start recovering, and the network will become even more stable. Additionally, mining will become more decentralized and, likely, more based on clean, renewable energy sources.”
Additionally, Bitcoin mining engineer Brandon Arvanaghi called China’s recent crackdowns “fantastic news” in a Bloomberginterviewon Monday.
The former Gemini security engineer explained how moving network hash rate to US states such as Texas or Wyoming provides more safety and security than a “centrally controlling” government like China.
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DeFi needs is innovation, geeks and community, which is incompatible with Chinese culture. The three major exchange public chains controlled by the Chinese and TRON have attracted many Chinese developers, but they are poor imitators of the DeFi project in the ETH ecosystem.
Filecoin 2020
1. Chinese sold nearly 10 billion US dollars mining machines
2. The price from 200 to 20 dollars
3. A few investors report to the police
4. Real storage applications are still far away https://t.co/1g1rr2ueFM
Due to the investigation of the founder and others by the Chinese police, DuJun, who is in Singapore, is currently the manager of this largest crypto exchange in China.
Actual controller of Findora is Lily Chao, a Chinese girl in 20s, who claims to have relationship with Chinese government, but does not disclose any education and work background. What is absurd is that top cryptographer Dan Boneh became her adviser. Dan’s PHDs joined the company
A big Chinese miner Wayi added 800P power to mine BCH recently, according to the https://t.co/1YRYr4QCmY browser. The official website of Shanghai Wayi shows that there are 23 mines under its management and more than 200,000 mining machines are managed. BCH is priced at $320. https://t.co/mHkeB0rzqp
