Region of China bans crypto mining

#1

The region, Mongolia, has specific energy consumption targets that’s it hasn’t met, and believes crypto mining plays a role in too much energy consumption. It is one of 30 regions aiming to reduce or maintain consumption, so further bans on mining are possible.

Most crypto mining globally happens in China, with China controlling some 60% of bitcoin network’s hashrate. And China is the epicenter for crypto mining hardware manufacturers.

But energy consumption is a hot button topic, as is China’s digital yuan. Could China deepen the ban? Well, the PBOC banned facets of the crypto industry in 2017 and 2019, so it’s not out of the realm of possibility. We’ll need to keep an eye on this.

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#2

I have little doubt that the energy issue certainly played a role in this decision. But even so, China’s dislike of independent cryptocurrencies while pushing hard for a state controlled one is certainly an interesting contrast.

#3

I wasn’t aware of the level of digital payment adoption by consumers in China. I thought a push towards a state-controlled digital currency was just about control - and that’s certainly a huge driving factor, but I don’t think it’s the only one.

Have a read. Pretty illuminating explanation of the current digital currency electronic payments (DC/EP) demand and adoption by the Chinese consumer.

#4

Both crypto trading and forex trading can be profitable if you learn them before risking your money. There are so many factors that you will be required to consider while trading. Without knowledge, you won’t even be able to decide which way to go and which one not to.

#5

I am sure the pandemic and the necessity for contactless payment was also a factor, though the control is definitely the leading reason.

#6

I don’t see the point

#7

The entirety of China banned cryptos recently but that didn’t slow people down at all. Chinese users are reported to be using OTC and P2P networks via an array of virtual private networks.

Over-the-counter desk activities have spiked ever since the Chines government introduced a majors on the local crypto market.

#8

Does this can have a relation with the chip producing crisis around the globe? Wonder if that is how China trying curb the crisis by banning crypto mining

#9

I believe the larger motive in the crypto ban is related to China’s desire for a central bank digital coin and control of the monetary supply/financial system.

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