Commenting on whether China regrets vacating the crypto playing field in 2021, SMU Associate Professor of Finance Emiliano Pagnotta said, “Beijing’s 2021 mining crackdown was a strategic blunder. They accounted for 75 per cent of the mining industry and, in a short period, lost a considerable percentage to the United States, chiefly.” On why China made the strategic error, he said, “An adversary to Bitcoin has much more leverage against the security properties of the network by controlling the majority of the hashrate. That latent threat is much more powerful than the ban itself, which only caused a temporary fall in the hashrate.” Assoc Prof Pagnotta however could not be certain whether China lamented its decision.
