In recent news, China’s government had made its goals and intentions abundantly clear when it decided to initiate crackdowns on BTC mining activities and operations. Premier Liu had been the one to make this announcement this past Friday.
The world’s flagship and priciest cryptocurrency have been struggling a lot as of late, and the current price is about $37,000, which is a 2.6% increase since yesterday.
As per the official statement by the State Council and the Chinese Premier, it is now absolutely vital that the operation and functionality of the debt, stock and finally, the markets pertaining to the foreign exchanges be cracked down upon with extreme force and that this entire operation is successfully maintained. All illegal and illicit securities, as well as financial-related activities, will be severely punished, the document read.
Lastly, as per the statement, it has now become crucial to successfully safeguard against all external shocks related to risks, as well as being able to efficiently respond to any situation involving imported inflation. In addition, anticipation management and market supervision will be strengthened, along with the preparation of policy reserves as well as response plans.
Regardless of the current situation, there may nevertheless be certain positives associated with China’s decision to ban BTC mining.
As of right now, it is still possible to mine and subsequently hold BTC within China, but these mining operations could be significantly reduced over the course of the new few months. Also, should a total ban be put into effect, this could theoretically assist the miners situated within the U.S and help them secure more improved margins that may then be executed via cleaner operation. Through this, the controversial carbon impact can potentially be completely removed from the equation, whereas the hash rate will still be decentralized.
To this end, Michael Saylor, the founder of MicroStrategy and one of the more prominent voices within the cryptocurrency community, stated that the abovementioned crackdown on the miners by Chinese authorities could significantly decrease the carbon footprint being generated. This would, in turn, also increase the profitability of the rest of the BTC miners as well as support the development of the ESG goals and ultimately increase BTC’s value and price.
Future remains uncertain
About 75% of the total BTC mining conducted in the whole world is done in China, and so despite efforts to carry out the mining processes via cleaner and more renewable methods, there are those who claim that it would be to everyone’s benefit if China were to leave the BTC mining scene altogether.
With the aforementioned ban being put into effect, time will only tell what the future holds for Bitcoin.