Could China Relax Its Bitcoin Mining Restrictions Due to Trump's Trade Tensions?
Hey there, mate! Let's talk about the latest in the crypto world, shall we? The US has overtaken China as the global leader in Bitcoin mining, causing some speculation about China's response. Although China has long advocated against cryptocurrencies, their mining pools have historically controlled a significant chunk of the global Bitcoin hashrate.
The US now accounts for 75.4% of the reported hashrate, confirming a significant shift from China, which once ruled the roost with 75% of the global hashrate as early as 2017. But, China ain't one to back down easily, especially when it comes to economic dominance.
In 2019, China signaled its intent to prohibit cryptocurrency mining, categorizing it as an "undesirable industry." Fast forward to today, at least four Chinese provinces have shut down mining operations due to concerns over excessive energy consumption. By the end of 2021, China declared all crypto-related transactions illegal.
However, despite the ban, mining activity hasn't entirely stopped within China. As a top exporter of crypto mining hardware, China might have a potential advantage should it decide to revive its mining sector. The unfolding tariff dispute between the US and China adds even more uncertainty to the long-term cost efficiency of US mining operations.
Experts like Nic Puckrin, Co-founder of the Coin Bureau, believe that this combination of trade friction and the US's renewed push for crypto dominance might be enough to make China reconsider its position. But, don't expect China to make a public U-turn on its crypto mining and trading ban anytime soon.
China's decisions about digital currency will, in turn, affect how its position on crypto continues to develop. China is actively participating in the digital asset space, like CDBC research and the digital yuan, which is partly driven by its desire to de-dollarize its economy and lessen its dependence on the US dollar.
In other words, China isn't just sitting around twiddling its thumbs. It's got plans up its sleeve, and we'll just have to wait and see what they are. 'Til then, keep your eyes peeled for any signs of a change, mate!
- The US has strengthened its position in Bitcoin mining, controlling 75.4% of the global hashrate, a significant shift from China's historical dominance.
- China's response to the US overtaking them in Bitcoin mining has been contradictory, with a ban on crypto-related activities while they export crypto mining hardware.
- China's cryptocurrency mining operations have been heavily regulated, with at least four provinces shutting down mining operations due to concerns over excessive energy consumption.
- Despite the ban, mining activity continues within China, which might take advantage of its hardware exports should it choose to revive its mining sector.
- The tariff dispute between the US and China adds uncertainty to the long-term cost efficiency of US mining operations.
- The Co-founder of the Coin Bureau, Nic Puckrin, believes that the combination of trade friction and the US's renewed push for crypto dominance could influence China to reconsider its position on cryptocurrency.
- China's stance on digital currencies, such as the digital yuan, suggests a desire to de-dollarize its economy and lessen its dependence on the US dollar.
- The crypto world is eagerly awaiting any signs of China changing its position on cryptocurrency mining and trading, but a public U-turn isn't expected anytime soon.
- The general-news outlets are closely monitoring China's decisions about digital currency and how they will impact China's position on cryptocurrency in the future.
- The ongoing developments in crypto adoption, trading, mining, and politics, along with the advancements in blockchain technology and finance business, make the crypto world a fascinating subject for anyone interested in technology and general-news.
