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Bitcoin acquired considerable popularity in a nominal range of time. The digitalized coinage was released in 2009 at the instance of economic double-dip across the globe. However, Bitcoin is subjected to a volatile territory, which every individual witnessed in the crypto industry at the 2021 market crash.
Bitcoin is an utterly political independent cryptocurrency as no government parties and intermediates are intervening in the complexity of bitcoin. Bear in mind that bitcoin cannot be banned, and china has announced a ban on bitcoin utilization.
There were tons of plentiful reasons behind the cryptocurrency crash. However, the utmost prominent one was china announcing the cryptocurrency crackdown. It was the utmost devastating announcement ever in the history of cryptocurrency as it plunged the value of bitcoin by an exceeding extent. All the more conferring the path of bitcoin, altcoins like Ethereum and dogecoin were also plunged extremely. To invest in bitcoins, you can visit https://profit-bitcoin.org/
The crackdown primarily focused on banning bitcoin, but a nominal population is familiar with why china announced the crackdown and what the bitcoin ban is all about. Here are some of the crucial aspects subjected to the bitcoin ban in china, so without wasting any further dues, let’s dive into the facts.
What Was Bitcoin Ban In China All About?
China has announced a bitcoin ban multiple times in the passing decades, and this is one of the prominent reasons that few robust sources claimed the latest move of china more of bark and less of a bite. However, the jointed committee of china was serious regarding their crypto regulation rules. On the 18th of May 2021, higher authorities of china announced a cryptocurrency crackdown in China. The cryptocurrency crackdown led to a bloodbath in bitcoin and several altcoins networks.
You might be wondering what the bitcoin ban in china was all about. Cryptocurrency crackdown in china correspondingly consists of banning any progression subjected to privately mined cryptocurrencies, especially bitcoin. Bitcoin ban in china included halting any financial institution rendering services regarding bitcoin and other cryptocurrencies. All the higher authorities warned bitcoin investors to prohibit holding bitcoin in their portfolios.
Announcement of the jointed committee of china tumbled the value of bitcoin and other cryptocurrencies. Bitcoin was plunged by more than 30% from the recent value and 50% from this year’s peak. Conferring the path of bitcoin, Ethereum, dogecoin, and lite coin were correspondingly plunged. In a nutshell, the cryptocurrency crackdown in china had some adverse effects on the entire cryptocurrency industry, and the effects are still pretty much evident.
Why did China Announce Bitcoin Ban?
China is the second county to pocket a maximized profit from bitcoin last year, whereas the united states are the foremost. Regardless of these facts, higher authorities were forced to acquire a harsh decision regarding bitcoin regulation, and you might be wondering why. The prominent reason behind the cryptocurrency ban in China is as follows.
An Aim for Financial Stability!
Bitcoin and other cryptocurrencies have rendered an exceeding extent of volatility in recent times as bitcoin has plunged and surged multiple times; all the more, the value of bitcoin is influenced effortlessly by significant market players.
Considering the overall positive growth of the entire cryptocurrency industry alongside the volatile nature of bitcoin, the digitalized coinage was claimed as a bubble. The Bitcoin bubble was compared with the prior economic bubble by few robust sources. To aim for financial stability alongside a compatible architecture of the economy, the country announced a cryptocurrency ban in the country.
Privately mined cryptocurrencies are criticized to an exceeding extent due to the anonymity and users’ secretion feature; all the more, every transaction processed utilizing bitcoin is untraceable. China announced the cryptocurrency crash to prevent the economic infrastructure from any mishap or a bubble burst.
Bitcoin is availed by a complicated progression named bitcoin mining. The process of validating bitcoin transactions by investing computing resources and power resources is known as bitcoin mining. Bitcoin mining has evolved with extreme complexity and is not probable with a low-end computing device.
Bitcoin mining at the instance necessitates a bitcoin mining rig alongside a bitcoin mining programmer. The specialized bitcoin mining rig consumes an exceeding extent of electricity as these mining rigs have to operate all day to verify the transaction and avail gigantic results in your bitcoin mining expedition.
You might be familiar with the fact that China is the capital of bitcoin mining. Bitcoin miners of china collectively contribute more than a 65% hash rate to the global bitcoin mining chain; yes, you read it right. The energy consumed by bitcoin mining in china single-handedly is more than the energy consumed by a few explicit regions such as Argentina.
Conferring the robust sources, if bitcoin mining continues in china for few more years, the energy consumption of bitcoin mining will extend up to 300 TWh, which is the annualized energy consumption of Italy in 2016.
The power consumed by the bitcoin mining route in china has correspondingly affected the environment. The fact might amaze you that if bitcoin mining continues for three decades, it will be able to push global warming by 2 degrees Celsius, single-handedly.
In a nutshell, bitcoin mining energy consumption is correspondingly one of the prominent reasons for the bitcoin ban in China. Subsequent to the bitcoin ban, the bitcoin mining industry has been affected to an exceeding extent as cryptocurrency crackdown is claimed to embrace the ease of bitcoin mining for the rest of the miners.
Chinese provinces like Beijing and Yunnan have already blazed the trail of halting bitcoin mining pools in these regions. The fact might amaze you that some bitcoin miners have correspondingly decided to mitigate to another country such as the American region, Afghanistan, and many more. Bitcoin miners who are not potential enough to migrate to another country have decided to sell off their mining equipment at a much lower price.
The average revenue of the global bitcoin mining chain was more than 60 million per day, yes you read it right, and bitcoin miners from china availed the most out of it. This is all you should know about the bitcoin ban in China.
Thank you for reading!