Home China hits even harder and expels miners from the country

China hits even harder and expels miners from the country

Cryptos

3 min read

Well, more bad news for cryptos, coming from China. After declaring that it was banning cryptocurrencies, it is now the turn of miners to be the target.

For a long time, China turned a blind eye to cryptocurrencies. For years now, most mining farms have been based in China, for example. Governments have been silent for years because bitcoin cannot challenge the country politically.

So, until a few weeks ago, everything was going well in the best of all possible worlds. However, in recent days, the whole country is stirred up with these announcements which are explicitly anti-bitcoin. Whether it is the use of cryptocurrencies or the act of mining them, everything is a problem today in China.

Yes, the Chinese party wants to clean all of China of the entire cryptographic ecosystem, even so, hundreds of profitable companies would have to be expelled.

The reason?

According to the announcements, it is due to bitcoin pollution. Some studies claim that 70% of minors are in China. The whole world therefore accuses China of accepting this business and participating in the destruction of the planet.

(However, as we have seen, the question of the energy consumption of bitcoin is much more complex than that).

Still, from this perspective, with numerous accusations, we can, in fact, perfectly understand the Chinese government.

Some say that this is just hypocrisy and that the real reason behind it is that China wants absolutely no competition (at least in its territory) with its digital Yuan which will be available for the Olympic games... This will be, let's remember here , the world's first state currency in the form of cryptocurrency.

That's why it seems contradictory. At first glance, you might think that China is anti-bitcoin and anti-crypto. It is not so. It's much more than that. China with the creation of the digital Yuan shows the whole world how much it believes in cryptocurrency. Yes, but only in his own, we want to say…

What will happen now for bitcoin miners?

Some say that it was not a good idea that the majority of miners concentrated in China anyway. Generally speaking, such a grouping should have made us think….

Of course, this is explained by its relatively affordable cost of energy. However, there are other countries with attractive prices such as Georgia or Kazakhstan, to name just two countries.

Similarly, Salvador will certainly attract many miners since it became the first country in the world to accept bitcoin as its official currency.

In short, the miners are starting to pack their bags. Doors open elsewhere. The question of bitcoin's electricity consumption is becoming increasingly tense.

It is perhaps time to seriously consider a move towards proof-of-stake even if in absolute terms and without this energy problem, Proof of work is one of the most intelligent mechanisms ever thought of.

To be continued..

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