China vs Cryptocurrency: the Ban on Crypto Mining

China vs Cryptocurrency

China is at loggerheads with cryptocurrencies.

It is a well-known fact that, although China possesses a great affinity for advancements in technology, it does not bear the same fondness towards cryptocurrencies. Indeed, arguably, China is one of the most tech-savvy nations in the world. But, on the table of cryptocurrencies, it has consistently refused a piece of the pie. Here we shall take a look at China’s recent ban against Crypto-mining and what caused it.

The trading and creation of cryptocurrencies have been illegal in China since 2019. However, its recent wide-sweeping crackdown on crypto-mining is having major consequences on the market, with prices of cryptocurrencies plummeting within mere days of the ban.

Before the ban fell into place, China accounted for approximately 65% of all Bitcoin mining globally, due to its easy access to cheap power and hardware. Regions like Inner Mongolia alone could generate around 8% of all Bitcoin mined globally. By comparison, the entirety of the United States of America accounts for about 7.2%. This remarkable feat is only achievable via high-powered computers that perform the complex computation required to generate cryptocurrency coins.

China’s carbon footprint

These power-guzzling computers can consume as much energy in terawatts as nations like Ukraine and Argentina, making them a significant environmental hazard. This has had a significant impact on China’s carbon footprint. President Xi Jinping, in a remote address to the United Nations on 22nd September 2020, announced that China aims to be carbon neutral by 2060. The statement has widely been cited as the reasoning behind the crypto-mining ban.

Concerns with decentralization

Bitcoin and other cryptocurrencies are decentralized by their very nature, relying on a blockchain system that verifies each transaction through each computer. This means they cannot be traced by a country’s central bank or be manipulated externally. This makes cryptocurrency difficult to regulate. Cryptocurrency would allow Chinese citizens to use money while being absolutely free of any supervision from the government. China’s reasoning behind outlawing Cryptocurrencies has thus been to prevent and control financial risks.


Share on facebook
Share on twitter
Share on linkedin
Share on email



What Is “Shrinkflation” and Why Opting For It Isn’t Companies’ Only Choice

You might have noticed grocery prices are soaring, or your usual go-to pack of chips is shrinking in size—all thanks to massive inflation. As of August 2022, the U.S. consumer price index (CPI), which measures the change in consumer prices for a specific set of goods over a period, has increased by 8.3% (year-on-year). Although it has gone down slightly from 8.6% in May, the highest it has ever been since 1981, it remains high and worrying.

Top 3 Affordable and Little-Known Smartphones to Bring Home in 2022

Top 3 Affordable and Little-Known Smartphones to Bring Home in 2022

Apple has remained at the center of the smartphone industry for years. The sleek, striking design, ever-improving chip and robust camera system of the iPhone have made it one of the most sought-after smartphones in the world. This month, Apple cemented and extended its lead in the industry by putting forward the next generation of iPhones.

5 More Business Podcasts You Need to Listen To

5 More Business Podcasts You Need to Listen To

Entrepreneurs have one thing in common—they always look for opportunities to learn and grow. To gain an understanding of running a viable business, you need to listen to the experiences of those who have emerged triumphant in the business world. A great way to do so is by tuning into a vast number of business and entrepreneurship podcasts scattered across the internet today.

5 Hobbies To Maximize Your Entrepreneurial Drive

5 Hobbies To Maximize Your Entrepreneurial Drive

Entrepreneurs are a special breed of person. They’re go-getters, risk-takers and dreamers. Yet, even the most driven entrepreneur needs to take a break from time to time. Spending every second of your day on your business is stressful, and you will lose your drive very soon. If you want to stay energetic and ready to take on new challenges at work, hobbies are what you need.

Making the Metaverse a Force for Good with the Metaverse Charity Foundation

Making the Metaverse a Force for Good with the Metaverse Charity Foundation

If you are a frequent reader of our website, you must have seen us mention The Sandbox, Decentraland and Axie Infinity. These are some of the most popular metaverses out there, and the one thing they all have in common is that they all have their origins in Asia. While Asia is home to all these metaverse projects, it suffers two main issues: the region has major rural-urban inequality as well as a significant wage difference between high-skilled and low-skilled occupations.

How Do Stores Get You to Spend More Money

How Do Stores Get You to Spend More Money?

Have you ever entered a grocery store to buy some milk but ended up with a bag full of items you didn’t even need? You’re not alone if you feel guilty for spending more money than you intended. It’s not our fault that we keep putting items in our shopping carts; we are manipulated to do so! To make sure you buy more, retailers will go all the way to carefully engineer every aspect of their store.