China seems to be at war with all cryptocurrencies, but most importantly, it is Bitcoin that is taking the most heat. The current government has issued a crackdown against the present miners that has definitely sent some of them in hiding, and the mining process has been torpedoed immensely all across the region, and this has also decreased the intended hash rate on Bitcoin’s blockchain, sending the price of the cryptocurrency down the bonkers. It seems that once again, we are to see a 2014 scenario in which the mining operation for Bitcoin in China was hit, and an eventual crash came bubbling in 2017.
China Imposes a Strict Crackdown Regarding Crypto Mining
An active Chinese mining specialist has some thoughts to put out amid the recent crackdown announced against the Chinese government’s Bitcoin and all crypto miners. According to Jiang Zhuoer, the escalation in this crackdown is of the essence now, and if the worst comes to worst, the large-scale mining operations would be terminated. But it won’t affect many enthusiasts going for crypto mining whole installing a few computing infrastructures in their own homes; the more sophisticated ones might turn their whole house into a mining operation. On the other hand, the real miners would settle for a small hydropower plant and would plant all of their mining gear in there, but the mining operation won’t stop in China in its entirety.
The main reason such escalation can be seen with this recent crackdown is that the government wants to protect the retail investors from the risks involved with that of cryptocurrency, including its mining and trading. The scenario is that individual mining is allowed, and you can keep the profits that you reap, but it is not permitted to make it a more structured operation as financial capital is not to intervene in mining. Given the hard stance of China, Europe, and the US might become the next most tenacious candidates of the crypto mining operation in the world. Some real opportunities will spring up not only in the US but also in Europe too. It is about time both grasp on this wonderful opportunity to power the crypto mining operation.