Even After Bitcoin Ban, China Still Accounts for 20% of Hash Rate
When evaluating a stock, it is important to forecast the potential value of the company in the future. Part of the analysis should include whether the business itself has longevity. A good company should stick around, even if it has taken a significant hit in its infrastructure or in the price of its shares. A stock of a company that can withstand different kinds of attacks and pressures may be a stock worth buying.
A commodity, on the other hand, will stick around regardless of the companies producing it. In this light, Bitcoin (CRYPTO: BTC) appears to be more of a commodity than stock in the Bitcoin network. Regardless, the same investment principle applies: Investors who buy Bitcoin should have confidence that the Bitcoin network is robust. If the China Bitcoin mining ban of 2021 has taught us anything, it is that Bitcoin has a resilient network.
In May 2021, China banned Bitcoin mining across the entire country. A massive exodus of Bitcoin miners occurred shortly thereafter. They fled to neighboring countries such as Kazakhstan and as far as Texas. As a result, the Bitcoin hash rate dropped by 50% overnight.
Source Fool.com
