China is cracking down on cryptocurrencies, triggering an exodus of miners

news: China has stepped up its crackdown, causing the price of cryptocurrencies to plummet. For some time, China has been increasing its supervision of cryptocurrencies, but it now appears that more than 90% of its Bitcoin mining capacity in the country may be shut down. Global Times, Issued by the Chinese government. On Friday, the southwestern Sichuan provincial authorities ordered crypto miners in the area to cease operations.

Yesterday, the Central Bank of China Announce It is ordering banks to crack down on cryptocurrency transactions.

effect: On the same day, the price of Bitcoin fell to $31,333-a 20% drop last week-and the uncertainty about its future is increasing. According to data from the cryptocurrency trading platform CoinBase, other cryptocurrencies have also plummeted, and the value of the entire market has fallen by 12% in the past few days. It also has an impact on hardware prices. Chinese consumers seeking to buy graphics cards have noticed that the price has fallen sharply in the past day or so. Graphics cards are a key component of Bitcoin mining. Some prices plummeted by 66%. South China Morning Post.

Why now: China sees decentralized and unregulated cryptocurrency as a threat. The central bank stated that they “disrupted the normal economic order” and “increased the risk of illegal cross-border transfers of assets and money laundering.” It plans to become the first country to launch its own official digital currency, e yuan.

Another option: Bitcoin mining will not stop because of China’s repression. Instead, the operator will move elsewhere. Texas Due to the relatively loose regulatory environment and cheap electricity, it has been touted as a place that can benefit from China’s new restrictions.

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