China banned bitcoin mining in some inland provinces last month. It arrived at an inconvenient time. Elon Musk recently promoted Bitcoin and Dogecoin as the next best thing to the dollar and euro, but he claimed that bitcoin would be harmful to the environment.
He’s had a run-in with Bitcoin. Alt-coins have plummeted. Musk has been accused of blaming others. It was primarily China’s fault. And it’s always present.
Could we please move on?
China appears to have killed Bitcoin miners by gunning them down. In its wake, the United States became a major miner. Kazakhstan is now in the top three. The Bitcoin algorithm no longer requires China because it has been recalculated to account for fewer miners.”
Miners actively migrate and remove equipment from large farms.” “We believe that industrial mining in China is dead,” says Oleg Kurchenko, founder and CEO of Binaryx, an Estonian cryptocurrency exchange.
China is also opposed to mining because it opposes Bitcoin in general and prefers to run its own digital currency, digital yuan. Some astute economists, such as Nassim Taleb, believe governments such as China will drive Bitcoin to extinction. Some crypto investors believe that central banks (such as the Fed) are interfering with Bitcoin, especially after Jerome Powell stated last week that the Fed’s “digital dollar is a high priority.” Cryptocurrencies, according to Powell, are also “not useful value stores.”
Clearly, Beijing shares these sentiments. They’ve had it with Bitcoin over there. For a number of reasons. One of them is the introduction of the digital yuan. Keeping control of a powerful currency is another matter entirely, but every government wishes to do so.
According to Ian Lowe, CEO of Dacxi, an Australian-based three-year-old blockchain platform and coin, China’s ban on crypto miners and exchanges has been on and off since 2018. Dacxi runs a Crypto Wealth Platform for first-time retail cryptocurrency investors.
China’s recent enforcement of these bans is primarily intended to reduce the risk of the release of their own digital currency. “A digital yuan will oversee every aspect of the Chinese economy without precedent, including making it more difficult to transfer wealth out of China,” he said, explaining why Beijing disliked cryptocurrencies, particularly Bitcoin.
The mining ban clearly had an impact on the Bitcoin block chain’s effectiveness in the short run, but its usefulness and breadth of ownership are unlikely to have a long-term impact on Bitcoin’s value, according to Lowe. “Are governments considering making Bitcoin illegal? It’s conceivable. Smart, regulated economies, on the other hand, will simply regulate it in the same way that financial markets have already been regulated. Few governments see the point in forcing bitcoin trading to take place in unregulated environments.”