{"id":13454,"date":"2021-07-01T19:10:52","date_gmt":"2021-07-01T13:40:52","guid":{"rendered":"https:\/\/zebpay.com\/?p=13454"},"modified":"2021-07-01T19:10:52","modified_gmt":"2021-07-01T13:40:52","slug":"china-banned-bitcoin-mining-now-what","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/china-banned-bitcoin-mining-now-what","title":{"rendered":"China Banned Bitcoin Mining: Now what?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/china-banned-bitcoin-mining-now-what\/#Why_would_China_ban_Bitcoin_mining\" title=\"Why would China ban Bitcoin mining?\">Why would China ban Bitcoin mining?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/china-banned-bitcoin-mining-now-what\/#So_what_now\" title=\"So, what now?\">So, what now?<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><strong>China\u2019s decision to ban Bitcoin mining has dominated discussions in the crypto space for the last ten days. <a href=\"https:\/\/zebpay.com\/in\/buy-bitcoin\/\" target=\"_blank\" rel=\"noreferrer noopener\">BTC<\/a> prices fell 12% since the news broke, an opportunity for many to buy the dip. However, the ripple effects of this one decision will affect the crypto community\u2019s balance of power.<\/strong><\/p>\n\n\n\n<p>The government will \u201ccrack down on bitcoin mining and trading behavior and resolutely prevent the transfer of individual risks to the society,\u201d said a statement issued by the Financial Stability and Development Committee of the State Council. Vice Premier Liu He, who is President Xi Jinping\u2019s top representative on economic and financial matters, chairs this committee.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/zebpay.com\/wp-content\/uploads\/2021\/07\/chart-2-1024x1024.png\" alt=\"Bitcoin Technical Analysis and Chart\" class=\"wp-image-13455\" width=\"457\" height=\"457\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/07\/chart-2-1024x1024.png 1024w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/07\/chart-2-300x300.png 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/07\/chart-2-150x150.png 150w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/07\/chart-2-768x768.png 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2021\/07\/chart-2.png 1200w\" sizes=\"(max-width: 457px) 100vw, 457px\" \/><\/figure><\/div>\n\n\n\n<p>China is presently in the process of a comprehensive regulatory crackdown on its fintech sector. J<a href=\"https:\/\/www.forbes.com\/sites\/georgecalhoun\/2021\/06\/07\/the-sad-end-of-jack-ma-inc\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">ack Ma\u2019s Alibaba is the present poster child<\/a>, but the moves expand far beyond any one company. Companies such as Tencent have also been slapped with massive fines after being found guilty of monopolistic practices.<\/p>\n\n\n\n<p>This isn\u2019t the country\u2019s first move against crypto either. The People\u2019s Bank of China, which regulates financial institutions and drafts the monetary policy of the country, issued a statement in 2019 that \u201cit would block access to all domestic and foreign cryptocurrency exchanges and ICO websites.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-would-china-ban-bitcoin-mining\" style=\"font-size:27px; color:#000;\"><span class=\"ez-toc-section\" id=\"Why_would_China_ban_Bitcoin_mining\"><\/span>Why would China ban Bitcoin mining?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are several differing opinions as to the motivation behind this latest crackdown.<\/p>\n\n\n\n<p>For one, China may be looking at Bitcoin as a hindrance to its ambitious climate goals. To give some context, Chinese President Xi Jinping <a href=\"https:\/\/shows.banklesshq.com\/p\/-rollup-china-bitcoin-miners-rip\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">committed China to achieve carbon neutrality before 2060.<\/a><\/p>\n\n\n\n<p>The country is one of the largest greenhouse gas producers in the world, so these are clearly ambitious goals. Bitcoin\u2019s environmental concerns may be one reason it finds itself under scrutiny. However, as we\u2019ve already seen &#8211; this is a doubtful argument at best. <a href=\"https:\/\/zebpay.com\/blog\/is-bitcoin-sustainable\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bitcoin is actually quite sustainable<\/a>!<\/p>\n\n\n\n<p>Others also believe Chinese authorities view crypto as a threat to its central bank digital currency &#8211; a crucial aspect of the country\u2019s plan to become an economic powerhouse. And when all else fails, there\u2019s always the standard \u201ccrypto allows money laundering\u201d argument to fall back on.<\/p>\n\n\n\n<p>Flawed reasoning aside, the impact of this decision is clear.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-so-what-now\" style=\"font-size:27px; color:#000;\"><span class=\"ez-toc-section\" id=\"So_what_now\"><\/span>So, what now?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The crackdown has resulted in 90% of the country\u2019s mining capacity shutting down. <a href=\"https:\/\/cbeci.org\/mining_map\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">With over 65% of the network\u2019s mining power<\/a> allegedly located in the country, this is a significant shakeup in the network\u2019s geographic distribution of hash power.<\/p>\n\n\n\n<p>(Also, fun fact &#8211; The amount of electricity consumed by the Bitcoin network in one year could power all tea kettles used to boil water in the UK for 14 years. Thanks Cambridge)<\/p>\n\n\n\n<p>The Bitcoin network\u2019s processing power took a nosedive as bitcoin miners fled the country in what is being called the Great Miner Migration. Only time will tell who will rise to fill this gap. <a href=\"https:\/\/www.cnbc.com\/2021\/06\/15\/chinas-bitcoin-miner-exodus-.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">According to CNBC<\/a>, Texas may be poised to pounce:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Despite a lack of reserves that caused dayslong blackouts last winter, Texas often has some of the world\u2019s lowest energy prices, and its share of renewables is growing over time, with 20% of its power coming from wind as of 2019. It has a deregulated power grid that lets customers choose between power providers, and crucially, its political leaders are very pro-crypto \u2013 dream conditions for a miner looking for a kind welcome and cheap energy sources.<\/p><\/blockquote>\n\n\n\n<p>Many in the <a href=\"https:\/\/zebpay.com\/in\/buy-cryptos\/\" target=\"_blank\" rel=\"noreferrer noopener\">crypto<\/a> community, myself included, have raised concerns about how heavily concentrated Bitcoin production was in China. On this front, this news is a definite win, as we move towards a truly decentralized global financial system.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China\u2019s decision to ban Bitcoin mining has dominated discussions in the crypto space. This decision could affect crypto&#8217;s balance of power.<\/p>\n","protected":false},"author":1,"featured_media":13456,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/13454"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=13454"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/13454\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/13456"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=13454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=13454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=13454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}