Tuesday, December 7

Bitcoin on the decline as China intensifies mining crackdown

According to Meng Wei, a spokesman for China’s National Development and Reform Commission, the country will deepen its crackdown on mining activity. The speech took place this Tuesday (16) during a conference in Beijing and by coincidence, or not, Bitcoin operates at a 5% drop in the last 24 hours.

The information, disclosed by the CNN, show a China increasingly worried about not allowing its citizens to abandon its national currency, the Yuan. Despite the great effort, and migration of large mining companies, China will never be able to completely expel Bitcoin from its country.

Like other countries with strict policies, Chinese citizens are the ones who need Bitcoin the most. Far beyond the financial issue, it’s also a cultural issue, after all they can’t even access sites like Wikipedia.

war on mining

The fight between Chinese authorities and miners has been going on for six months. In May of this year, China banned mining activity in its country, causing these entrepreneurs to relocate their equipment in other places like the US, Kazakhstan and Russia.

This Tuesday (16), China returned to attack this branch, claiming that it will be working more deeply to reprimand miners, who are acting illegally.

“Virtual currency mining is high energy consumption and carbon emissions, and does not play a positive role in industrial development and technological progress”

Even banning both mining and any other activity involving cryptocurrencies, such as trading on exchanges and even buying and selling related products on sites like Alibaba, many Chinese are circumventing this ban by using decentralized exchanges or even registering companies abroad to use centralized exchanges. The practice of mining, on the other hand, continues to be carried out by small miners who are hardly discovered.

Despite presenting itself as an ecologically correct country and concerned with the environment, as shown in the quote below, today the biggest source of energy in China comes from burning coal. After the exodus of miners to other countries, such as the USA, bitcoin mining is already showing itself to be greener.

“The risks arising from the production and trading of virtual currency are becoming increasingly prominent. Its blind and disorderly development has a severe adverse impact on promoting high quality economic and social development, energy conservation and emission reduction.”, disse Meng Wei

Chinese need Bitcoin the most

Essentially there are two types of people who most need the BTC, those who live in countries with terrible monetary policies, such as Brazil, whose Real was the 16th that most devalued in 2021, and also countries that do not give freedom to their people, such as the case of China.

Although the Yuan, China’s currency, has appreciated more than 12% against the dollar since May 2020, its population of more than 1.4 billion people has no choice but to use the local currency.

In addition to strict currency guidelines, China also prohibits its citizens from accessing social networks that are so common to us, such as Facebook and Twitter. Furthermore, other sites like Wikipedia are also inaccessible.

Therefore, it is essential that projects like Bitcoin and others that promote freedom continue to be explored in countries like China. After several bans, China seems to be just wasting time and energy, after all there is no way to ban Bitcoin.


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