The Chinese government couldn’t be clear about its reservation around the use or trading of cryptocurrency as it has started a nationwide crackdown regarding crypto mining and trading. The crypto exchanges stretching across the region are being ordered to strict the extent of their services only to the premium or expert traders, and for people to reach that level, they have to show a combined balance of $1.03 million. So, in general, a lot of clients on a daily basis would be shorted out of the system; China couldn’t be sending more clear signals than this.
Bitcoin is the world’s most esteemed cryptocurrency, and it is currently seeing the worst bearish count to date as it has lost about half of its value. A lot of the blame has to be put onto China because it is commencing a solid crackdown against crypto mining and trading, but on the other hand, Elon Musk and his tweets regarding the environmental impact of Bitcoin mining have led the price of BTC tumbling in vertigo.
How can this Sudden Restriction on Mining Turn out Positively for Bitcoin?
At the moment, things are not turning up for Bitcoin at all, and China’s strict regulations and crackdown against mining are the very reason behind this. Even if things are strict at the moment, people can still buy and hold cryptocurrency in there, but with the government breathing down on the neck of the miners, the mining of cryptocurrency could be affected drastically. And if it comes to the worst, as China initiates a complete ban on crypto mining, then miners in the USA would be able to cover for all the slots and turn up a market for mining there.
According to the MicroStrategy Michael Saylor CEO, the restriction of the mining in China and the extensive crackdown taking place, it is clear that the carbon footprint of Bitcoin mining would decrease drastically. This will definitely increase the profitability of those Bitcoin miners that remain; this will definitely drive up the value of Bitcoin for sure, and who knows, things might even start turning up for Bitcoin.