Bitcoin might have experienced its most significant coordinated attack during the last several months. However, the investor community did not capitulate in this instance.
After giving miners notice, China completely banned mining in most regions, which caused the single most considerable mining difficulty adjustment.
However, the situation of Bitcoin seemed already damaged after Elon Musk announced that Tesla would stop accepting Bitcoin payments because of the environmental impact of mining. It is still unknown whether Musk influenced China’s decision, but indeed those events had negative effects.
On June 16, a couple of weeks later, China decided to block cryptocurrency exchanges even from the web search.
Finally, at the end of June, the People’s Bank of China told banks to shut down their bank accounts and later even banned their social networks accounts.
It would be tough to exchange Bitcoin for stablecoins because the OTC desk is a gateway in the region.
Several analysts seemed hesitant to describe these tactics as something other than meaningless after the publication of these events. However, it appears that China began a very well-planned attack on the mining industry and the Bitcoin network.
The short-term influence might be a reasonable success because of the fall in Bitcoin price. Besides that, a 51% hash rate attack might occur.
Despite the plans, China’s attack eventually failed, and here are the major reasons why.
After reaching a peak at 187 million TH/s in May, the Bitcoin network hash rate fell.
The first couple of weeks resulted from restrictions to coal-powered areas, estimated at 26% of the mining capacity.
However, the indicator bottomed at 85 million TH/s after the ban extended to other regions. It seemed its lowest level in two years.
Individuals continued to act as mediators after the companies have been banned from the country.