In 2021, the biggest news in the world of digital currencies came from China, when the country banned Bitcoin mining. Then came the news that the Bitcoin price was not hampered and even proved the naysayers who felt governments were going to ban Bitcoin wrong.
On the contrary, we heard that the network was growing despite the obstacles coming from the hash rate. It was achieved with the help of decentralization, but one big question that remains is: why did the country ban mining? There are several theories for this.
We will discuss some of the major theories that have emerged. Click here for more essential cryptocurrency tips.
Why did China ban BTC mining? Some theories…
The Virtual Yuan – CBDC (Central bank digital currency)
There is no way to be more direct. Once the country witnessed the rush of Bitcoin miners, they began to crack down on them, applying mass surveillance and the idea of unbanking various dissidents.
So, at the end of the day, what we can find is that the country is now busy killing the mining industry, which has the potential in China for no less than a billion dollars, as they want to challenge the competition coming from CBDC.
blackouts
Now the big question is whether the country faces too many energy problems. If you check the reports, you will see various news about blackouts.
According to the country’s information office, called BEIB, there are too many concerns regarding energy consumption and many more problems are related to mining. According to various experts, China is facing some environmental issues and may lead to various problems including digital currency mining which is severely regulated.
So now the big deal is that they are planning to get rid of the hydroelectric power plants.
clean and green energy sources
This goes hand in hand with the previously discussed issue of blackouts. Many private players involved in power plant dominance in China are now reportedly starting the year with a bang.
There are a lot of investors who are now developing a lot of hydroelectric plants because of the constant cash flow. There are many regions that will see progress with an effective solution to many of the energy problems.
The new model in China
Several experts feel that China wants to stick to its own economic model instead of being guided by foreign ones. That is why the country is now attracting more players and industries.
Now the big question is whether, as a nation, they are cracking down on companies and individuals who plan to work towards proven global scale. And this is not just limited to Bitcoin.
Making it difficult to use BTC
This may not clearly explain the idea of banning BTC in the country. At the same time, you may not find the country adding too many colors on the theory that you would prefer the best.
In one of the events held there in the country, we have seen China remind too many digital currencies, including BTC, that they will not make them legal tender. These also have no real value support, and one can find many more things to combat cryptocurrency trading in the market.
