FX.co ★ Bitcoin repression in China forced the largest miner manufacturer to suspend production

The fundamental background for bitcoin continues to deteriorate. This point is noted by many crypto experts around the world, and not only private analysts. However, the fundamental background is deteriorating not only at the global level. Everyone has already heard about the news from China, but many people miss local news. In South Africa, the founders of the AfriCrypt cryptocurrency exchange stole 69,000 bitcoins worth about $2.3 billion belonging to their clients. Earlier, it was also reported that the head of the Turkish crypto exchange Thodex also pulled off a similar scam. In the beginning, it became known that all employees of the company lost access to the servers 7 days before the "hacking" event. At the same time, the owners themselves notified customers about the hacker attack, but asked them not to report this case to law enforcement agencies, as this could complicate the process of returning funds to the owners. However, some of the company's clients suspected something was wrong and still turned to law firms for help, which found out that all the exchange's coins had already been withdrawn through large mining pools, so it is no longer possible to track their location now. Experts believe that this case may provoke a tightening of regulation of the cryptocurrency sphere in many countries of the world, in particular in South Africa. Simply put, stealing bitcoins, if you are the owner of the exchange, is easier than simple. And the exchanges themselves are not regulated by states, so if suddenly the exchange "bursts", then no one will return funds to investors, as in the case of banks. Naturally, this news can also not be attributed to the category of positive. A certain part of investors around the world may now refuse to invest in bitcoin, as they will be afraid of losing their money as a result of theft, which, as it turns out, is not very difficult to implement.

In addition, it became known that the world's largest manufacturer of mining equipment, Bitmain, is temporarily suspending sales. In China, where the authorities of the country have begun repressions against miners, a huge number of used mining rigs have entered the open market, so the market is now oversaturated with this type of equipment. Prices for miners have fallen to 75% since the beginning of April. Thus, Bitmain is waiting for a reduction in the supply of mining equipment on the market and an increase in prices. Probably, it is unprofitable for the company to sell mining installations at current prices, or simply no one buys them, since there are a huge number of used miners on the market. The manufacturer says that it will continue selling miners for small altcoins. In the future, it is planned to restore the production and sales of all types of miners.