What Is China's Bitcoin Ban All About?

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Bitcoin is the mere asset to create a boom and bust situation in the marketplace in such a short period. Bitcoin is considered a blessing in both the technical and financial fields as bitcoin combines both these industries.

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Bitcoin has correspondingly led to decentralized finance and several blockchain models in explicit industries such as the health care and sports industry. There are authentic trading platforms like bitcoin revolution that can help you in availing significant profits from bitcoin. Bitcoin is an exceedingly profitable popular virtual asset and payment method simultaneously but is still volatile.

Recently financial authorities of china have announced a cryptocurrency crackdown on bitcoin and every other privately mined cryptocurrency. The crackdown just shocked everyone, and no one was familiar with the fact that China is about to ban bitcoin and other digitized coinage. The announcement of China impacted the cryptocurrency industry to an exceeding extent. Below mentioned is everything you should know about the cryptocurrency crackdown in the industry.

Why did China announce A Cryptocurrency Crackdown?

China was targeting bitcoin and other privately mined digitized coinage for a very long time. This is not the foremost time that Chinese financial authorities have banned bitcoin and other digitized coinage.

Back in 2018, the joint committee of china banned bitcoin and other digitized coinage. However, the ban was lifted after some time. The announcement of Chinese authorities in 2018 led to a cryptocurrency market crash and declined the value of bitcoin to just $4000. Here are some of the crucial reasons why Chinese financial authorities banned bitcoin mining.

Financial stability

Bitcoin is not backed up by the higher authorities, which demonstrates the fact that there is no one to stabilize it, which further leads to the volatility of bitcoin. The volatility rendered by the network of bitcoin has concerned several higher authorities of china; all the more, the volatility of bitcoin is considered as a vulnerable threat to the financial system of the explicit region.

All the more, as per the robust sources, money laundering through bitcoin is exceedingly easy, and hackers and non-authorized entities were using the loopholes and potential features of bitcoin to make a gigantic buck. China might have availed a gigantic buck from bitcoin in recent times, but the growth rendered by bitcoin is exceedingly rapid in such a period of time, which might have created a cyst around bitcoin, and cyst might get disrupted any time.

China’s Official Cryptocurrency!

There are several countries that are planning to compose centralized cryptographic cash, but only China has done the progression so far. China has the potential to create its own centralized cryptographic cash, which is named Yuan.

Yuan was launched recently in China; it has the basic concept of bitcoin but is centralized and is issued by the higher authorities of china subjected to this task. All the more bitcoin had the interest of Chinese investors to an exceeding extent, so to drive the interest of investors towards Yuan, Chinese financial authorities considered banning bitcoin mining.

Bitcoin mining

Bitcoin is correspondingly one of the most prominent reasons why the higher authorities of china decided to ban bitcoin. You might acknowledge the fact that bitcoin mining consumes an exceeding amount of energy, especially electricity. The extreme consumption of electricity was emitting greenhouse gas to an exceeding extent.

The greenhouse gas emission led by fossil fuel burning to fulfill the energy consumption was exceedingly harmful to the ecosystem; all the more, if bitcoin mining would have sustained in China, the energy consumption might reach 300 TWh in 2024, which is even more than the traditional banking systems.

Xi Jinping has proposed a carbon natural china by the end of 2060, and bitcoin mining energy consumption was coming in the way of that plan as an obstacle.  To sum up, bitcoin mining energy consumption is one of the prominent reasons why China did ban bitcoin and other privately mined cryptocurrencies.

How Did Cryptocurrency Crackdown Impact The Cryptocurrency Industry?

Subsequent to the announcement of the cryptocurrency crackdown, the entire cryptocurrency market crashed, and the value of bitcoin declined to an exceeding extent.

This is everything you should know about the cryptocurrency crackdown in China.

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