China’s government has started to shut down cryptocurrency mining operations in the country. With China making up about 70% of all mining activity at the time of this writing, this is a big deal.
The bitcoin mining industry has been hit hard in the past few months, with the hashrate taking a dive down below 50% of its all-time high. This drop was not expected, as the Chinese mining industry had been expecting an increase in the local government’s policy to ban cryptocurrency mining in the country. This unexpected decline in the hashrate has led many to believe that Chinese miners will not resume mining activity anytime soon, with some predicting a return to the halving waiting near.
China is taking a strong stand against bitcoin mining, which has played a major role in its development. The Chinese government has decided to ban bitcoin mining in its country and will shut down most of the cryptocurrency mining centers that existed there. An official at the Ministry of Industry and Information Technology said that the decision is to maintain the stability of the country’s currency. The government has reportedly already made sure that its policies are being followed by mining centers.. Read more about bitcoin hashrate chart and let us know what you think.The entire cryptocurrency market has dropped more than 10% in the past two days as China takes action against large bitcoin miners. This is no longer smoke and mirrors as the hash rate has dropped to its lowest level in eight months. The 14th. In May it was 180.66 million and now it is 127.65 million. All machines are also delivered with the help of a logistics company in Guangzhou.
This is what a Chinese news portal reports: Globaltimes – It is estimated that this move by the Chinese government will wipe out 90% of bitcoin mining, at least in the short term, as regulators and traditional bank officials stand firm in not allowing crypto activities or services.
They also said that they would not provide energy sources to the miners to run their machines. As a result of these emergency measures, most mine operators have suffered enormous losses and are also unable to find a suitable place to transfer their equipment abroad.
The window to escape is closing and we are trying to find mines abroad to house our mining equipment.
China is restricting bitcoin mining, which is not surprising because it wants nothing to do with cryptocurrencies and wants to focus on its carbon footprint and its five-year economic plan. However, it was shocking that the government in Sichuan stopped, as the miners wanted to take advantage of the rainy season and only use hydropower as a source of electricity.
Some miners also believe that the cost of the machines will drop significantly in the short term and that they should immediately look for another site. A Chinese logistics company is currently airlifting 3,000kg of bitcoin mining equipment to Maryland, US. The price per kilo is $9.37, and CNBC confirms that both parties have paid the taxes.
We also noted that several banks in China have sternly warned companies against allowing or participating in any form of blockchain trading or transactions. Banks have also sent a similar notification to their users and traders to remind them of the risk they are taking by investing in cryptocurrencies.
China is clearly not interested in participating in this crypto revolution, at least for now, so we can expect bitcoin to be oversold in the coming days or weeks. It will also be interesting to see how mining in the US develops and how that will affect the overall situation for bitcoin and other cryptocurrencies.
Kartikeya Gutta, born and raised in India, is a cryptocurrency journalist and freelance writer for the website itsBlockchain. It covers various aspects of the industry through in-depth analysis and research. His passion for blockchain and the crypto-ecosystem is largely because he believes it can truly change the world and help millions of people.
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Sign up to be notified of the latest posts.Beijing has ordered that the majority of bitcoin miners must stop operations within a month, as the China’s government seeks to reduce the country’s reliance on digital currencies. The government’s latest order, which was published on September 15, has seen the number of bitcoin mining “computations” (or hashrate) drop to as low as eight-month lows, according to a statement issued by the State Council Information Office.. Read more about how to start bitcoin mining and let us know what you think.
Frequently Asked Questions
Is China shutting down Bitcoin mining?
China is not shutting down Bitcoin mining. China is shutting down Bitcoin exchanges. What is the difference between Bitcoin and Bitcoin Cash? Bitcoin is the original and most popular cryptocurrency. Bitcoin Cash is a fork of Bitcoin that was created on August 1st, 2017.
Why China is cracking down on Bitcoin?
China has been cracking down on Bitcoin since 2013. They have banned all Bitcoin exchanges and have even gone as far as to close down local Bitcoin mining operations.
What is the current Bitcoin Hashrate?
The current Bitcoin Hashrate is 16,868,738,848 GH/s.
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