China Plans to Shut Down Bitcoin Mining: Is This a Strategy?
China is the largest and the most powerful country in the world in terms of Bitcoin mining operations. After the chaos started last week when the exchange platform CoinMarketCap eliminated important data of South Korea’s crypto transactions, countries started to get worried about their economies.
A lot of countries started to analyze the cryptocurrency consequences and work at regulating the way people use them. China seems to take the same measures as France, Germany, Egypt and other countries.
What are China’s future plans?
They want to stop trading Bitcoin as well as mining centers. Can you imagine what changes will produce in China’s economy? A cryptocurrency revolution. But, can it be a strategy to influence the Bitcoin mining process or not?
The authorities want to restrict the institutions and traders by introducing limits and control, related yesterday (16 January, 2018) the national Security Times magazine.
They also propose to block the access at offshore platforms. The centralized trading will be banned. We want to remember that on 16 January 2018, the Bitcoin value fell under 12.000 US Dollars.
China had already banned (verbally) in September 2017 the activities of domestic exchanges, related Yicai Media Group. Some of them took their businesses and implemented them overseas.
Even if a lot of cryptocurrencies institutions closed, there are investors that continue to promote the trading operations.
Mr. Pan Gongsheng- Vice Governor of Chinese Central Bank said these days in an official meeting that ”Pseudo-financial innovations that have no relationship with the real economy should not be supported”, – Reuters.
Important personalities from China have started voting for banning the Bitcoin mining in their country. Dozens of institutions that work with cryptocurrency and blockchain systems are getting worried. The future is still uncertain.
What do you think, will China ban the Bitcoin mining activities for good?