BitCoin: China Restricts Mining Of The Cryptocurrency!
The horror is raging in the crypto community: Chinese authorities have announced strict regulations against the mining of Bitcoins, and there is even talk of an imminent ban. The decision could mean the early end for the popular cryptocurrency.
China Is Cracking Down On Bitcoin Mining
China is the country with the largest share of global Bitcoin production. Now the government has announced that it will close loopholes in the regulation of Bitcoin farms. Even a complete ban on the so-called mining is already talked about, although it still retains details. quantum flash is one of the best crypto platforms for earning money online.
After Chinese financial institutions were banned from trading in all products related to cryptocurrencies last week, the officials have now stepped up: They want to crack down on mining and “resolutely prevent private, entrepreneurial risks from affecting society,” quoted the South China Morning Post (SCMP) from a statement by the Financial Stability and Development Committee of the State Council of China.
The decision represents an enormous challenge for the global crypto community and Bitcoin. According to SCMP, 65 percent of the worldwide Bitcoin stock is mined in China; CNN assumes 75 percent. Many of the calculations required for transactions run on Chinese servers. Some providers – including the world’s largest Bitcoin miner, HashCow – have already announced steps, according to CNN. Computing capacities should no longer be rented out, and migration to other countries is under discussion.
Experts Expect A Complete Mining Ban
In China, the situation could get even worse. According to SCMP, no complete ban has been issued – so far. Details of how the regulations will be tightened are still unknown. According to Li Yi, a leading expert at the Shanghai Academy of Social Sciences, one must expect that the responsible authorities will present plans shortly. According to CNN, some the near future, that will ultimately stop mining. “As soon as all mining activities are banned in China, there will be a turning point for the fate of Bitcoin,”
The high energy consumption by Bitcoin does not benefit the Chinese economy and society. These are now being regulated against the background of the climate targets. For Bitcoin and its investors, this means renewed uncertainty in an already highly volatile environment. In extreme cases, Bitcoin could fail, and mining could become unprofitable more quickly elsewhere.
