As reported by Decrypt, on Tuesday (26), rumors surfaced on Twitter that the Chinese government would have regretted banning the crypto sector, after the bitcoin (BTC) have reached a new historic high last week.
The ban on the crypto sector caused a large emigration of bitcoin miners from China, which was once responsible for 50% of the world’s hashe rate.
However, according to the Decrypt correspondent in the country, the Chinese population is very skeptical about the new possibility of a return to crypto mining.
According to Decrypt, the rumors were probably generated for two reasons.
The first would be that, on Oct. 21, China’s National Development and Reform Commission said it would add virtual currency mining to its list of defunct industries, after getting the public’s opinion.
Adding an industry type to the list causes it to be eliminated from mainland China.
In 2019, the Commission proposed adding crypto mining to the list, but backtracked after public opinion. For that reason, some people believe that public opinion could set the crypto mining industry free again.
However, for the Decrypt correspondent, this is impossible, given that, last year, the Chinese government pledged to be neutral in terms of carbon dioxide emissions.
In addition, the country’s lawmakers believe that the mining process of cryptocurrencies it wastes energy and is one of the obstacles to its efforts to combat global warming, which is one of the Chinese government’s priorities.
Also, according to Decrypt, most of the Chinese population is against bitcoin mining, as this is an area that does not generate jobs and because miners do not pay taxes to the government.
The second reason that would have generated the rumors is linked to the fact that the Commission of the country replicated the news that the United States now has the highest rate of hashes in the world. Does this mean the regulator regrets having banned crypto mining?
Decrypt also raised another hypothesis of interpretation of the Commission’s replication of the news: some Chinese government officials believe that the increase in bitcoin mining in the United States would harm its trajectory in the elimination of carbon emissions, which would lead to a disruption of the financial order American.
This would make replicating the news just a form of rejoicing. Or, it could just point out that the Chinese government had successfully completed its attempt to combat bitcoin mining.
With that, what would be, after all, the real status of the sector in the Asian country? Too rigid, according to the Decrypt correspondent.
Inspections for internet protocol (IP) addresses that mine crypto are being carried out even by small local governments. In addition, a large number of bitcoin mining companies left China Where ended its activities.
Some companies that manufacture mining hardware, such as Bitmain, have already announced that will no longer send devices to mainland China.
From these notes, it is possible to see that the Chinese government sees bitcoin mining as an enemy of the objective of neutralizing carbon emissions. According to Decrypt, an official economic news portal said:
“Bitcoin mining has high energy consumption, high pollution, high risk and low production. It will only compete for precious energy and waste huge resources.”
Despite having already dominated the crypto mining industry, it seems clear that China is about to pull out of the market entirely, with no predictions of future returns.
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
