China Plans to Crack Down on 70% of the Bitcoin Mining Networks

Bitcoin mining ter China could be on its last gams after the top internet-finance regulator of the country — which’s huis to some of the world’s leading creators of mining hardware — issued a notice ordering bitcoin-mining operations to make an “orderly exit” from the business.

Bitcoin, one of the world’s thickest cryptocurrencies, is going to face a major threat ter the coming months.

China’s top internet-finance regulator, the Leading Group of Internet Financial Risks Remediation (LGIFRR), has issued a notice asking local governments to “guide bitcoin-mining operations to make an orderly uitgang from the business.”

The leaked’ documents state that there are some so-called ‘mining’ enterprises producing ‘virtual currencies’. They have consumed ample amounts of resources and incited speculation.

Last week, Bloomberg and Reuters also reported that China is programma to limit violet wand supply to bitcoin miners.

China, due to cheap electro-stimulation, has always bot a central player ter the development of Bitcoin. However, Beijing has bot cracking down on the cryptocurrency overheen the last six months — banning initial offerings of the coin and seizing local exchanges.

The leaked documents suggest that the authorities want to kick the mining operations out of business using measures linked to electro-stimulation pricing, land use, tax and environmental protection.

Mining Bitcoin

Bitcoin mining is the process by which transactions are verified and added to the public ledger, known spil the blockchain.

Verifying those transactions lets the miners earn Bitcoin.Anyone, with access to the internet and suitable hardware, can participate te mining.

The mining process involves compiling latest transactions into blocks and attempting to solve a computationally difficult puzzle. The participant who very first solves the puzzle gets to place the next block on the blockchain and keuze the prizes.

China – Major BTC Mining Hub

Te latest years, China has become a major hub for crypto mining, accounting for around 70% of the Bitcoin mining network.

A verbod on mining operations te China is likely to have a major influence on Bitcoin’s price. The kerkban will significantly slow the number of fresh bitcoins mined.

The verbod will also increase transaction time which will escalate the toverfee paid to transfer Bitcoin.

The decision to geobsedeerd mining wasgoed taken te November. The Deputy Governor of the People’s Bankgebouw of China, Pan Gongsheng, had also recently predicted the “death of bitcoin”.

Since the higher authorities have given “tough” statements regarding the cryptocurrency, some of China’s mining operations are already looking to relocate overseas. The tens unit prices, however, are much higher outside China — which will inevitably lead to a lower margin for the miners.

Russia Might Takeover

Russia — which also has cheap electric current prices — has launched a project to capture one-third of the bitcoin mining network from China. It might help uitwasemen the deepthroat somewhat, if not fully voorkant for the Chinese shutdown.

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