Sunday, September 19, 2021
HomeNewsBitcoin: China versus miners - why that helps the cryptocurrency

Bitcoin: China versus miners – why that helps the cryptocurrency

The cryptocurrency Bitcoin has weathered the crash after the closure of mining farms in China. The course has recovered again. By Emmeran Eder, Euro am Sonntag

Last week, Bitcoin cracked the $ 50,000 mark again. After hitting an all-time high of $ 64,000 in April, it fell to $ 30,000 in mid-July. Most of the market watchers actually expected the bear market to continue. But it turned out differently.

In addition to the overheating of the crypto currency segment, the main reason for the crash was interventions by the Chinese authorities. Most of the mining farms in the Middle Kingdom were then closed until July. Bitcoin is created in these data centers. Since around two thirds of the server farms were based in China, the cryptocurrency was hit hard.

However, the miners reacted surprisingly quickly and flexibly and relocated the farms to Kazakhstan, Mongolia, and North and South America. From the initial nervousness of investors, confidence developed: Due to the now more decentralized production of bitcoins, there is now – unlike before – no longer any dependency on a single state.

Everything for your capital!

€ uro readers know more: what moves the markets, which investment ideas promise success and how they save money.

To our offers

In addition, more renewable energy is used to create bitcoins in these countries than in China, which means its CO2-Footprint decreased. The climate-damaging production was recently one of the main criticisms of the cryptocurrency. “This stress test in the past few months impressively demonstrates Bitcoin’s resilience to attacks,” says Dirk Röder, Bitcoin expert and manager at the IT company MaibornWolff.

Certificate was canceled

Bitcoin is currently consolidating between 45,000 and 50,000 dollars after the fulminant bull market. There is strong resistance there and, according to Jochen Stanzl, technical analyst at the CFD broker CMC Markets, it will be decided in the coming weeks whether the cryptocurrency will continue to go up or down again.

Investors who have a Bitcoin certificate (ISIN: DE 000 VL3 TBC 7) are committed by Vontobel and want to continue to bet on Bitcoin, have to reorient themselves. The paper was canceled by Vontobel on September 10th. The Swiss are now offering a new Bitcoin certificate (ISIN: DE 000 VX1 BTC 7). However, this does not automatically replace the old paper in the depot. Investors must either sell their old paper or phase it out and purchase the new product. Waiting for the due date has the advantage that there are no sales charges.

The fees for the new certificate are 3.75 percent pa, but more than the old 1.5 percent. According to Vontobel, this is necessary because of the high capital requirements.

Investors should therefore consider buying an ETC (ISIN: DE 000 A27 Z30 4) on Bitcoin like that of the ETC Group instead of the new Vontobel paper. This costs only 2.0 percent a year and since there is also a right to delivery for Bitcoins, profits after a year of holding are tax-free according to the current fiscal law. In the case of certificates, on the other hand, there is always a withholding tax.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


Please enter your comment!
Please enter your name here

Trending News

Recent Comments