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News: Repression against China has exacerbated the fall in cryptocurrency prices. China has been tightening regulation on cryptocurrencies for some time, but it now looks likely that 90% of the country’s Bitcoin mining capacity will close, Global Times, Published by the Chinese state. Last Friday, authorities in the southwestern province of Sichuan ordered the region’s crypto miners to stop operating.
Yesterday, the central bank of China he announced ordered banks to trade cryptocurrencies.
Consequences: On the same day, the price of Bitcoin fell to $ 31,333 — a 20% drop last week — amid greater uncertainty about its future. Other cryptocurrencies also fell, and the entire market has fallen in value by 12% in recent days, according to the cryptocurrency exchange platform CoinBase. These events are also having an impact on hardware prices. Chinese consumers who want to buy graphics cards that are critical components of Bitcoin mining have found significantly lower prices on the last day or so. Some prices fell to 66%, according to South China Morning Post.
Why now: China sees cryptocurrencies, decentralized and unregulated, as a threat. Its central bank said it had “disrupted the normal order of the economy” and “increased the risks of illegal cross-border asset transfers and illegal activities such as money laundering”. It aims to become the first country to launch its official digital currency. e-yuan.
Another alternative: Bitcoin mining will not be suspended due to China’s repression. Instead, the operators will be relocated. Texas China has been hailed as a place where new restrictions can be exploited, thanks to a relatively lax regulatory environment and cheap electricity.
This story was first published in our daily newsletter, The Download. Give your name The most significant technology trends you want to deliver to your inbox every morning.
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