AUS
NZ
UK
CA
USA
IND
Highlights
- China had been taking multiple steps since 2013 to curb the entire ecosystem of cryptos.
- In September 2021, People’s Bank of China had clearly prohibited cryptocurrency transactions or mining.
- Mammoth institutions flooding more-than-ever cash into these cryptocurrencies is just the beginning.
China is one of those countries which probably does not have much of a liking towards Bitcoin or other cryptocurrencies. In September 2021, Chinese regulator People’s Bank of Chine (PBOC) had clearly stated cryptocurrency transactions or mining had been made completely prohibited by law. This is seen as probably the strongest enforcement towards shutting down the entire crypto space in a country which had been the largest hub for crypto mining in the world.
China had been taking multiple steps since 2013 to curb the entire ecosystem of cryptos, but with the recent boom in these digital tokens, China’s intentions have only strengthened. Back in May 2021, China banned corporate entities from rendering any service related to cryptocurrency.
Image Source: © Rastudio | Megapixl.com
Financial institutions and payment firms have also supported China’s move. The government had also recently been in the limelight for plans to launch its own digital version of fiat currency, “digital Yuan”. This is also one of the main reasons for China to eliminate all other potential threats to its in-house digital currency.
Read More: Bitcoin hits $50,000 for the second time in two months
So, is Bitcoin’s future safe despite China’s aggressive moves?
Although China’s jabs might slow down the growth of Bitcoin, even the most stringent of Chinese regulations on the crypto space might not be sufficient to completely take its growth trajectory off the track.
One may not be able to transact with or invest in Bitcoins in China, but the global rush towards investing in this the new-age digital currency is something to be kept under watch for the next few years. Mammoth institutions flooding more-than-ever cash into these cryptocurrencies is just the beginning.
As far as Bitcoin mining is concerned, some analysts believe crypto mining could see a major shift outside China to places of low electricity rates such as Venezuela, where electricity is available at rock-bottom rates. Crypto miners also have an option to move to friendlier countries or clod places where mining could relatively easily be scaled up.
Read More: Here is how much you could have made with Litecoin in a year
Bottom Line
China had been very aggressive in the past to put a full stop to Bitcoin and other cryptocurrencies and is still chasing this quest. China, being the largest hub for Bitcoin mining, might give a knee-jerk reaction in the short term but the broader outlook seems to be unharmed.
Mining can be shifted to much better alternatives, in countries with low cost of electricity, low regional temperatures or with crypto-friendly governments. These places can potentially help to scale up mining operations far more than what they can potentially do in China.
Read More: Is Charli3 the diamond Crypto investors are searching for?
