China To Ban Bitcoin Mining? 🚫

by | 10 Apr, 2019

China To Ban Bitcoin Mining?

China, which was once the home to roughly 70% of all Bitcoin mining, has now shocked investors with its plans to potentially ban all mining operations. But why?

Surprisingly, it’s all about the environment. Bitcoin mining has been extremely popular in China, thanks to the low energy costs associated with its monstrous coal-fuelled power plants. However, these mining operations alone consume more energy than the entire nation of Ireland, and have been shown to have a significant impact on global emissions. 

Climate scientists have estimated that if left to its own devices, demand for energy to power these mining operations could drive global warming 2°C higher in just two decades. That’s quite something!

China’s National Development & Reform Commission has placed Bitcoin mining alongside a list of 450 other industrial activities earmarked for potential elimination, but no official implementation date has been set. Banning the world’s mining hub, however, could have drastic effects on Bitcoin’s price and global infrastructure. 

Cutting the cheap supply of new Bitcoin coming out of China would undoubtedly lead to an appreciation in its price as the per unit mining cost grows and supply tightens. While this may sound like a positive outcome for crypto investors, the effects could be dire for the hundreds of Chinese mining firms that were built on the crypto wave of 2017/18. 

We’ll have to see what comes out in the wash!

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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