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China’s war on cryptocurrencies is total. It has not only banned banking transactions: now it wants to close mining farms.
The Bitcoin continues in freefall a few weeks ago. It reached more than $ 60,000 in April, and today it is trading at $ 32,000 , half. In a single day it has lost 8%, and others such as Etherium or Cardano, more than 11%. And the fall is expected to continue at least in the next few days , after the news that occurred today.
A few weeks ago , China , which is the main cryptocurrency market because electricity is cheap there, announced that it prohibited banks from making transactions with cryptocurrencies , which started the collapse of Bitcoin and other cryptocurrencies .
But this weekend it has taken a stronger step, by prohibiting power companies from supplying electricity to mining farms.
According to the Chinese media Global Times , the news has fallen like a slab in the province of Sichuan, which is where most of the country’s mining farms are concentrated, since there is abundant electricity and cheaper.
With this ban, it is estimated that 90% of the country’s mining farms have already closed , or are required to do so. That represents more than 30% of all mining farms globally , with a third of them in China.
Although the Chinese government itself recognizes that cryptocurrencies can help the local economy, it is a financial asset that it cannot control, which is why it is not amused. There is also a concern about the brutal electricity consumption, which could skyrocket. So, at least for now, surely until they regularize it, they have decided to ban cryptocurrency mining .
” The exit window is closing, and we are struggling to find mines abroad to place our mining devices ,” one of these entrepreneurs explained to Global Times.
Cryptocurrencies are like a roller coaster. Just two months ago they broke listing records, but a couple of tweets from Elon Musk, and now the Chinese government, have plummeted in value.
Experts believe it will rise again, but it is these unbridled ups and downs, over such frivolous things as an Elon Musk performance on television , that are worrying governments and economists.
