Against the background of the tightening of the policy of the Chinese authorities, mining companies are massively migrating to safer jurisdictions.
It was this factor that led to a record drop in the bitcoin hash rate to the lowest values since May 2020. That has dropped below 100 exahashes per second (EH/s) this week.
However, many experts argue that ultimately the global crypto economy will only benefit from such a trend.
Galaxy Digital CEO Mike Novogratz adheres to a similar point of view. He noted that the Chinese government is not in a position to stifle the crypto sphere. Mining will not only remain as a type of business but will also be able to significantly strengthen its position, thanks to the transfer of the capacities of companies to other countries.
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The collapse of bitcoin by more than 60% did not lead to the collapse of the crypto market.
Novogratz stressed: "The system works as it should. It is a very reliable system that has been built in a short period."
Bitcoin will eventually consolidate its status as "digital gold".
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The Ethereum blockchain also has great potential. Although this network has recently faced strong rivals in the face of the Terra and Solana projects. Ultimately, however, Ethereum will maintain its leading position, and ETH may even become the first largest cryptocurrency, the billionaire believes.