Some have just found a way to crack down even more on cryptocurrency mining in the country, and the markets are do not happy about it. Since yesterday, all mining operations in Sichuan province are offline after the Sichuan Province Development and Reform Commission and the Sichuan Energy Bureau announced on Friday that they would stop providing electricity to at least 26 companies in the region. With Sichuan being the country’s main mining province, it is now estimated that at least 90% of the country’s cryptocurrency operations have effectively disappeared (or, at least, hibernated) as government officials continue efforts to regulate more. tightly trading digital currencies.
The effects were immediately felt worldwide – Bitcoin is currently down almost 20% from the same period last week at around $ 32,500. While the price of Bitcoin is still astronomically high compared to a year ago, the continued downward spiral of recent weeks lends credence to the argument that the Bitcoin bubble is bruised, if not entirely burst … At least for the moment.
Mining operations are scrambling for a solution – As the World time reported yesterday, many of Sichuan’s biggest Bitcoin mining companies are desperate for overseas partners to stem the economic hemorrhage, with operators reaching out to potential business allies in more crypto-friendly regions like the United States. North America and Russia. Likewise, the price of mining rigs has plummeted as these companies seek to offload them elsewhere following the latest crackdown in China.
Not everyone is against Bitcoin – China’s move, while both dramatic and detrimental to Bitcoin’s near-term rise, does not necessarily negate the growing acceptance of cryptocurrency as a viable asset alternative to traditional options like fiat currencies.
Earlier this month, El Salvador made the monumental decision to accept Bitcoin as legal tender by September – the first nation to do so – while in the United States, ForUsAll became the first retirement company to announce that it would accept Bitcoin investments in clients’ 401 (k) accounts. .
And with companies like Coinbase now supported by Apple Pay and Google Pay, it’s clear Bitcoin isn’t going anywhere anytime soon … well, its existence is going nowhere. Its value will continue to depend on any newsworthy tweets and memes from Elon Musk. That alone might be enough to make some people think more than any action taken by the Chinese government.