What Are the Reasons for the Possibility of Crypto Mining Becoming Illegal in China?

What Are the Reasons for the Possibility of Crypto Mining Becoming Illegal in China?

More than 70 percent of the cryptocurrency mining in the world happens in China, but there is surprising news heard these days: China intends to make the crypto mining illegal and stop it. The development and the improving committee of China has announced that attending to cryptocurrencies and mining them are nothing but a waste of country’s sources and should be immediately stopped. One reason that China has stated regarding the immediate cessation in mining cryptocurrencies is their damage to the environment.

China and Environmental Concerns

 Mining cryptocurrencies means a lot of electricity consumption. Many Chinese companies that are in the business of mining cryptocurrencies are located in provinces whose main source of electricity is coal power plants. The reason is that this type of fuel is cheaper than other energy sources. With a ballpark figure, it can be said that crypto mining produces three to fifteen tons of carbon dioxide each year.

This amount of undesirable gas has worried the government of China. The concern of this country about damaging the environment and its subsequent costs is not the only reason they are against crypto mining. Another reason is the possibility of a basis for fraud and scam due to lack of legal supervision on the crypto world.

The Stance of China toward Cryptocurrencies

China believes that cryptocurrencies have a variety of benefits. However, the downsides and uncontrollability that they have are more than their benefits. The Chinese believe that high energy consumption is a lot to pay for cryptocurrencies. Also, they believe that the promises of the crypto world based on providing security for transactions and trades cannot came to be, and this infrastructure has not been doing so well in realizing its promises. Cryptocurrency and Blockchain algorithms from the point of view of Chinese decision makers are vulnerable, and therefore they cannot be fully trusted. China as an overpopulated country and a pioneer in using cryptocurrencies has acted out of haste. It doesn’t seem likely for the claims of this country regarding the ban of crypto activities will last long.

Other Countries and Cryptocurrencies

Fast and clear decisions on the part of the Chinese against cryptocurrencies are done in a condition where other countries of the world are thinking about bringing cryptocurrencies to their retail markets. In many countries, Bitcoin and its counterparts are used in online shops, and these new technologies are booming more and more each day. Perhaps China is to some extent thinking appropriately and logical, but the truth is that cryptocurrencies cannot be put offstage so easily. As it was mentioned in many countries, these new technologies are even used in retail. Many other countries are getting help from cryptocurrencies because of problems they may be facing and international sanctions. So the world that cryptocurrencies offer is so vast that you cannot ignore it so easily. What seems to be obvious is that the path of cryptocurrencies will not be stopped in the future. Though for now the path for these new technologies is not paved but they will sooner or later find their rightful place in the world.