The Chinese authorities want to ban mining cryptocurrency⚙on!!!

The Chinese authorities want to ban mining cryptocurrency⚙on!!!

On 8 April, the information appeared that the Chinese authorities want to ban mining cryptocurrency. According to officials, production of digital assets hinders the development of the local economy.

On Monday, the State Committee on Affairs of development and reforms of China (NDRC) published the list of industries that should be promoted or banned. Among the unwanted areas of activity caught mining virtual currency. Experts believe that the process of mining Bitcoin and other cryptocurrencies requires a lot of computing power, which leads to overconsumption of electricity and environmental pollution.

It is worth noting that the NDRC report is a recommendation, therefore, the extraction of virtual currencies can not be banned. The founder of blockchain startup Primitive Ventures of Douwe van posted on Twitter the following message: "the NDRC is a new list every 3-5 years since the beginning of 2000-ies. The Committee recommended to prohibit some of the industry until 2006, however, many of them are still working".

If the ban would be adopted, this will have a devastating impact on Chinese mining companies, in particular, Bitmain, which occupies a leading market position in production of ASIC miners and mining Bitcoin. Representatives from Bitmain, unfortunately, refused to comment on the news about a possible ban of mining of cryptocurrencies.

In 2017, the Chinese government banned the primary supply of coins (ICO) and trade cryptocurrencies. However, the government allowed the mine virtual currency, as it is prenosilova a good profit to the state budget and increased production volumes. Now, however, officials changed their attitude towards mining firms, probably due to the decline in profit from mining the leading digital assets, which occurred as a result of the devaluation of the coins. The profitability of mining has decreased in comparison with indicators of the beginning of 2018, so cryptocurrency does not bring a sufficient contribution to the Chinese economy.

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