Crypto Mining ban in China
Presently, we are seeing a mining ban in China, China shutdowns 90% of crypto mining. The Chinese Government ordered many FinTechs not to assist any crypto trading. Despite a trading ban, China mines up to 80% of global trade in Crypto Currencies. Bitcoin fell more than 10% on Monday as China tightened its grip on the vast cryptocurrency mining business by banning operations in a crucial southwestern province. According to a notice that was distributed on Social Media, authorities in the province of Sichuan ordered the closure of 26 mines last week. Chinese media reported that all crypto mining in the province had their power cut off at midnight Sunday. China’s crackdown appears to have led to a significant decline in bitcoin’s hash rate — or processing power — which has fallen sharply in the last month, according to data from Blockchain.com
China as an early adopter of crypto
Looking back at the history of BitCoin in China, China was an early adopter. China was home to a lot of exchanges and miners in the early days. Presently BitCoin has its reputation because of China. We have seen systematic snap-downs by the Chinese government on BitCoin. Firstly, in 2013 with payments, following in 2017 with exchanges. Chinese companies like Binance gained a reputation for themselves after offshoring.
Mining ban: A portal to opportunities for the rest of the world
The mining ban in China assures a ton of opportunities to the U.S and many other countries. It should be noted that around 80% of mining was done by China, now other countries get a chance to make the most out of this ban. China hosts a large amount crypto miners because of its cheap electricity. Countries like Canada, Switzerland, El Salvador and The United States of America could reap the benefits of the mining ban because of cheap electricity. Chinese mining machines are being imported to places like Kazakhstan.
China’s intention behind the ban
According to some analysts, China plans on launching its official cryptocurrency. By doing this, they get full control over all the transactions and prevent capital flight, investment, and tax collection.