The cryptocurrency market is going through a commotion as a consequence of the veto imposed by
The measure is a blow to “virtual mining”, because
With far-fetched arguments
Under this reasoning, it focuses its security forces on miners to curb the expansion of virtual currencies.
This is why, in order to achieve this goal, it is necessary to use powerful computers to decipher mathematical algorithms that, as the supply of coins is fixed, are of increasing complexity, forcing miners to carry out more cumbersome and energy-intensive processes.
That’s why the central bank also banned financial institutions, payment companies and internet companies from facilitating cryptocurrency trading. Specifically, it threatened them with “drastic measures against speculation with virtual currencies.” Behind this, however, is the interest in imposing the yuang as a digital currency. The currency has been in the test phase since March.
An immediate effect
The bitcoin fell 5% after the announcement of
“Cryptocurrency markets are in an extremely fragile state overall, and these kinds of drops speak to that; there’s a degree of panic in the air,” said
Shares of cryptocurrency and blockchain-related companies are also under pressure, such as
A new accommodation
Cryptocurrency declines will depend on the success of the “mining migration” to
This country borders
addition, a mining company can officially register in the country since the digital currency was officially legalized in 2020.
“Another important factor for
Given the country’s diverse climate, mining farms can be set up in regions with cold climates, which will reduce cooling costs and maximize profits.
Tags: BitcoinChinacryptocurrenciesXi Jinping