Bad news for those hoping that the recent upsurge of Bitcoin would continue as the news that China plans to blacklist mining of crypto currency is bound to have an effect on the valuation of the most famous crypto coin.
China wants to ban the creation of bitcoins and other crypto currencies. The so-called mining of digital coins has been placed on a list of business activities that must disappear because they do not comply with the country’s rules, are unsafe, waste resources or pollute the environment.
There are now 450 activities on the provisional list. The Chinese population can give their opinion on it until 7 May. It is not specified how or as from when the aforementioned activities should be phased out.
The exploitation of digital currencies happens with huge amounts of computers that solve mathematical formulas. However, the computers used consume lots of energy. Moreover, the more people are looking for new crypto coins, the more difficult the formulas to solve are.
As early as 2017, China had already put a brake on the unbridled growth of crypto coins. At that time, the mining of bitcoins, among others, was already curbed on an industrial scale. The country still makes the most equipment that is used to mine the digital currency.
Picture Credit: CryptoCurrency Imagery