Bitcoin is a valuable token having immense store value. The market cap of bitcoin is correspondingly gigantic. You know that bitcoin is a free cryptocurrency, which means there are no government authorities and third parties present in the bitcoin complex. Bitcoin mining is the action of generating new bitcoin units and adding these units to circulation. Bitcoin miners are making a considerable amount of money by mining bitcoins.
Not only bitcoin mining but also trading bitcoin units and investing in bitcoin is very profitable. You can make a huge buck in your trading journey by reading more about Special Purpose Acquisition Company (SPAC) to increase your capital. Recently China announced a cryptocurrency mining ban on private cryptocurrency. After China’s cryptocurrency crackdown, government authorities permitted a few institutions to continue bitcoin mining.
However, recently, China intensified the crackdown, and several provinces have started to ban bitcoin mining. Cryptocurrency crackdown crashed cryptocurrency marketplace. And it declined the store value of prominent cryptocurrencies like bitcoin and ethereum in an exceeding. According to some rich sources, China might lift the bitcoin mining ban; let’s find out whether it is true or not.
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What was the China bitcoin ban?
Every crypto enthusiast is familiar with the fact that recently China announced a cryptocurrency crackdown in the country. Cryptocurrency crackdown was primarily about banning bitcoin payments, institutions offering bitcoin and other cryptocurrency services, and bitcoin mining. However, all the higher authorities also warned bitcoin traders and investors to prohibit these activities.
You know that bitcoin is a politically independent currency; due to such liberty, the store value is very volatile. The validity of cryptocurrencies alongside environmental aspects was one of the prominent reasons why China announced a cryptocurrency crackdown.
Cryptocurrency crackdown announcement in China crashed the entire cryptocurrency market. The market crash declined the store value of bitcoin and other cryptocurrencies in a considerable amount. So let’s check out whether China will lift the cryptocurrency mining ban or not.
Bitcoin mining in China
China was the most significant cryptocurrency market as several regional trustable exchange and bitcoin mining hardware manufacturers. In a nutshell, China was the bitcoin mining hub before the bitcoin mining ban. However, despite such facts, China announced bitcoin mining in the country.
Why did China announce a bitcoin mining ban?
According to some rich sources, Xi Xing Ping has decided to make China carbon-neutral by the end of 2060. But, of course, you are familiar with bitcoin mining energy consumption, especially in China, as the cost of electricity in China is exceedingly low.
Due to the vast electricity consumption of bitcoin mining, China’s greenhouse gas emission was constantly increasing. To sum up, higher authorities in China announced a bitcoin mining ban due to the environmental aspects of bitcoin mining.
Will China lift the bitcoin mining ban?
China’s mining industry contributed more than 65% to the global bitcoin mining chain. So, in a nutshell, China completely dominated the mining industry. However, after the bitcoin mining ban in China, there was a massive decline in the hash rate of the global bitcoin mining ban.
Several bitcoin mining pools suspended their actions publically. All the more great provinces started to cut the electricity for bitcoin mining plants. After such progression, Chinese miners have started to move to another country to continue bitcoin mining.
Most of these miners have migrated to Texas and Kazakhstan as the cost of electricity in these two regions is nominal. Unfortunately, till now, China has not signaled anything on reversing the bitcoin mining ban.
However, bear in mind that China did ban bitcoin trading and investment progression way back in 2018, but traders and investors continued the progression with the help of foreign exchange. Recently the public bank of China announced that all cryptocurrency transactions are illegal.
According to some sources, China will not reverse the bitcoin mining ban unless there is a decline in the economy of this country. Still, China might reverse a ban on bitcoin trading and investment progression.
Several miners have already moved to Texas, and higher authorities of Texas have also announced that Texas will be the new bitcoin mining hub now.
These are some facts regarding the bitcoin mining ban reversal in China.
