Spil Bloomberg and CnLedger have reported, the Chinese government intends to crackdown on the cryptocurrency mining industry te the upcoming months. Analysts have stated that the dismissal of miners te China could lead to a bitcoin price surge due to a decrease ter supply.
According to CnLedger, it is unlikely that the Chinese government will outright geobsedeerd cryptocurrency and bitcoin mining te the short-term, because it is difficult to do so through rigorous regulations and policies. But, the government has taken the treatment of collaborating with local electro-stimulation grid operators to provide a more challenging ecosystem for miners. Essentially, the Chinese government is attempting to shove miners out of the local industry.
“Caixin: PBoC did not hold a closed-door meeting, strafgevangenis are they asking to shut down mining fields before a ‘deadline.’ However, the regulators are indeed step by step canceling the preferential policies suggested previously te electrical play fees, taxes and land to some mining facilities.
YiCai: Regulators are asking local departments to report the current status of bitcoin mining companies under administration, and ‘guide the mining firms to uitgang te an orderly manner’ by taking various measures from the aspects of tens unit, land, tax, environmental protection.”
Ter an vraaggesprek with South China Morning Postbode, one bitcoin miner who requested his name to remain anonymous due to the sensitivity of the subject, exposed that there exists corruption within the Chinese bitcoin mining sector and that miners have bot paying local grid operators to be able to mine cryptocurrencies.
Spil such, since November of 2018, Chinese miners have bot exploring other potential regions to relocate and migrate their cryptocurrency mining ventures. While southwest China has become a popular destination for miners because of its cheap electric current, other regions such spil Norway and Chile have cheaper electro-therapy with naturally cold climates that are optimal for bitcoin mining centers.
CCN previously reported , “Cui noted that bribery is common ter the Chinese mining toneel, spil electro-stimulation providers have absolute control overheen their decision to restrict power supply to certain businesses that fail to obey with their requests.”
Albeit analysts have claimed that the decrease ter the supply of bitcoin upon the dismissal of bitcoin mining companies by the Chinese government could lead to a price surge, such a situation can only occur te the short-term.
If Chinese miners are coerced by the government to give up their operations and stir elsewhere, miners will simply relocate to better regions with cheaper resources such spil Chile and Norway to proceed their mining pools. While the short-term supply of bitcoin could become impacted, ter the long-term, it will have minimal effect on the supply of bitcoin.
Also, the project of the Chinese government is to attempt thrust bitcoin miners out of the local sector te the mid to long-term through stricter regulations and policies. The bitcoin and the cryptocurrency market will likely not be affected by the government’s crackdown on cryptocurrency mining ter the next few months.