Bitcoin miners back again at business after being driven out of China  PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Bitcoin miners back again at business after being driven out of China 

Bitcoin miners back again at business after being driven out of China  PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The crypto industry in China has experienced a devastating shakeup months ago as the government launched a series of crackdowns on cryptocurrency mining operations. 

The authorities’ hostility was so severe that majority of crypto miners in the country were forced to migrate, not just in other provinces, but outside of the country. Aside from mining, the government has also banned crypto-related purchases, investments, trading, and exchange. 

As a result, China’s share of bitcoin mining has dropped by 55% since the beginning of 2021, as Bitcoin participants had no choice but to shut down their operations.

Even the big crypto players in the country were not spared from the crackdown. Huobi, one of the largest crypto exchanges in China, was forced to suspend both its crypto mining and selected trading services in the country. 

The question is why?

While other countries are supporting cryptocurrencies, China stands on the opposite side and does everything it can to stop the rise of cryptos. But the question is, why? 

The government said that the crypto activities’ excessive use of electricity is a big risk to the environment as they mainly rely on coal-powered electricity plants. 

But many analysts believe that the real motive behind China’s aggressive efforts to repel cryptos is to clear the way for its Central Bank Digital Currency, the digital yuan. In other words, the government is aggressively eliminating all possible competition in the market before it rolls out its digital currency. 

New crypto haven

After their abrupt migration, China-based crypto miners have now settled on new and more crypto-friendly locations, and are currently continuing their business. 

The United States and Kazakhstan are some of the countries where crypto miners have migrated, because of these nations’ crypto-friendly policies, and above all, their abundant energy sources and cheap electricity costs.

Image courtesy of Cointelegraph News/YouTube 

Source: https://bitcoinerx.com/blockchain/bitcoin-miners-back-again-at-business-after-being-driven-out-of-china/

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