The crackdown of China on crypto has been building up since its depleting reserves of fossil fuel mines of Inner Mongolia. Digital Yuan may sweep off what’s left.
Ever since the rumbling of China’s digital Yuan started making rounds, investors had begun to speculate a slough in BTC price. In fact, this fear had its foundations in the huge portion of BTC mined in China.
Prior to the launch of the digital Yuan, China was seen coming heavily down on bitcoin mining farms. In a discreet course of action, the People’s Bank of China has prohibited all financial institutions from providing crypto services. The scale of the crackdown, as observed, is several times more severe than its previous attempts.
“Bitcoin has periodically come under China’s regulatory fire. However, this time the campaign is sweeping on the hot-footing to possibly clear the grounds for a grand circulation of digital Yuan at the Beijing Winter Olympics in 2022.”
The depleting mines of Inner Mongolia form yet another cause for China to draw shutters on the mining farms operational in the region. Exhaustion of its fossil fuel reserve adding to the environmental pollution from its combustion culminates into a sound reason for China wanting to prohibit the act.
The mining rigs of Inner Mongolia contributed a staggering 71% of the total mined Bitcoin.
The HashCash chief has previously reacted to certain prominent investors controlling the Bitcoin graph by puffing up a sentiment cloud around the environmental concerns from the greatly power-intensive practice of mining Bitcoins.
However, shutting down Chinese mining farms would have only a short-term dipping for the world’s foremost cryptocurrency, according to Chowdhury.
“Countries like Canada and El Salvador are on the way to establish mining rigs harnessing their renewable resources. Several other countries are to follow suit. Such efforts should remove the environmental concerns shrouding the popularity of Bitcoin,” explains Chowdhury.
“An innovation like cryptocurrency reserves the capacity to disrupt several industries and realize many business concepts. However, growth curves may enter dampened phases caused by several connected events and conditions. This is inherent in any asset class.”
In tune with this analysis, several industry leads refuse to budge from their standing with respect to investment in crypto. Eminent financial institutions insist on holding on to their investment in crypto. Many investors are taking advantage of the dip to add to their wallets. In doing so they also convey a message forbidding rushed purchase and panic-selling of digital assets.