The price of Bitcoin and other cryptocurrencies has decreased. Currently, the price of bitcoin has dropped 50% from its highest point. The latest development that has caused the price of bitcoin to decline is an event that occurred in China. Some of China’s top cryptocurrency mines including Huobi Mall and BTC.TOP has suspended operations in China. This has sparked fears that bitcoin will increasingly become a target for government regulation. China operates 70% of all cryptocurrency mining in the world. The Financial Stability Development Committee of the State Council, led by China’s Deputy Prime Minister, Liu He, conducted raids on mining the virtual currency.
Previously, China also announced a ban on financial institutions or payment companies from providing services for transactions using cryptocurrencies. Of course, this will make it more difficult to buy cryptocurrencies in China. It might even make miners switch to the Yuan digital currency that China has been campaigning for.
Crypto mining such as Bitcoin requires computer devices that consume large amounts of power. This is one of the reasons why China carries out raids. China considers it environmentally unfriendly. “Crypto mining consumes a lot of energy, which runs counter to China’s carbon neutrality goals,” said Chen Jiahe, an analyst with Novem Arcae Technologies.
Energy consumption from crypto mining in China could exceed 297TW per hour by 2024. That’s more than the entire consumption of Italy. Even though President Xi Jinping wants his country to be more environmentally friendly and reduce carbon emissions. It is estimated that later this phenomenon will make China lose its position as a crypto mining center such as Bitcoin and switch to Europe or the United States.