The Chinese authorities decided to move towards a carbon-neutral green transformation, doesn’t care about Bitcoin anymore
According to a media most recognized by regulators of China, Caixin, the Chinese authorities have decided to move towards a carbon-neutral green transformation.
Chinese officials said last month they would crack down on mining farms for their high power usage and large environmental impact. One of the culprits was illegal coal extraction in some regions to power mining farms – something that went against China’s continual efforts to go green and become carbon neutral.
Chinese authorities are planning to use more renewable energy sources to “go green”
Mining uses up a massive computing system that solves millions of complex calculations each second to validate transactions on the Bitcoin network. This requires massive amounts of energy for the maintenance, cooling, running of the machines.
Countries like China have come down hard on such activities. This has caused the exodus of influential miners in the country to other regions, as AZCoin News reported.
And from now on, they have probably decided to use another method, move towards a carbon-neutral green transformation, and they don’t care about so-called “Bitcoin pricing power”. As Chinese reporter Wu Blockchain said that China no longer welcomes mining farms.
According to reporter Hu Yue, a document signed by the Sichuan Provincial Commission of Development and Reform and the Sichuan Energy Bureau issued on the same day as the “Notice on Cleaning up Virtual Currency Mining Projects” appeared in multiple WeChat group.
The document stated:
“The Chinese authorities have decided to move towards a carbon-neutral green transformation. They will never accept the issuance and speculation of non-digital legal currency virtual currency and regard the fight for the so-called ‘global Bitcoin pricing power’ as a false proposition. China no longer welcomes energy-intensive virtual currencies.”
Head of Facebook Financial reports China’s move will be better for cryptocurrency
It can be seen that China has almost completely suppressed Bitcoin mining activities. Referring to this issue, WuBlockchain also shared the following:
A background is people in the Chinese community are calling for China compete with the United States in bitcoin field. Clearing mining will enable the United States to defeat China in the bitcoin hashrate. Caixin’s response implies that the Chinese government does not care. https://t.co/W2gEcbBtAu
— Wu Blockchain (@WuBlockchain) June 22, 2021
In another development, the head of Facebook Financial, David Marcus, and also the person in charge of crypto project Diem (formerly known as Libra), shared his view on the Chinese government cracking down on Bitcoin mining.
Source: David Marcus/Twitter
This must be an extremely optimistic thought since such a massive crackdown from China has been interpreted as “a great development” for the cryptocurrency. And more surprisingly, many people in the crypto space also agree with him. Most see such a move may seem bearish in the short term but is good for Bitcoin in the long run.
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