China cracks down on cryptocurrencies, leading to exodus of miners

news: China’s massive crackdown has caused cryptocurrency prices to plummet. China has been increasing its regulatory pressure on cryptocurrencies for some time, but it now appears likely that more than 90% of the country’s bitcoin mining capacity will be shut down, according to a report in Global Timespublished by the Chinese state. Last Friday, authorities in southwestern Sichuan Province ordered crypto miners in the region to stop working.

Yesterday, China’s central bank announce It was asking banks to crack down on cryptocurrency trading.

Archaeology: On the same day, the price of Bitcoin dropped to $31,333 – down 20% in the past week – amid growing uncertainty about its future. Other cryptocurrencies have also fallen, and the entire market has fallen 12% in value over the past two days, according to crypto exchange CoinBase. These events affect hardware prices as well. Chinese consumers seeking to purchase graphics cards, which are important components of bitcoin mining, have found sharply lower prices in the past day or so. Some prices have fallen by as much as 66%, according to South China Morning Newspaper.

why now: China regards cryptocurrencies, both decentralized and unregulated, as a threat. Its central bank said they had “disrupted the normal order of the economy” and “increased the risk of illegal cross-border asset transfers and illegal activities such as money laundering”. It plans to become the first country to launch its own official digital currency, Electronic yuan.

Another alternative: Bitcoin mining will not stop due to Chinese repression. Instead, operators will move elsewhere. Texas It has been described as a place that could benefit from China’s new restrictions, thanks to a relatively lax regulatory environment and cheap electricity.

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