Chinese authorities intend to restrain crypto trading and mining. Official announcements effect the market in a blink of an eye. Chinese crypto miners are trying to reschedule their operations after the latest changes in the governmental views.
There appeared an acronym in the crypto area that stands for ‘fear, uncertainty and doubt’. The abbreviation is FUD. It’s used to describe a strategy to influence the acceptance of crypto by using negative or false information. Chinese regulations lead to FUD in the crypto society.
However, crypto experts are aware of the strategies and express no crucial concerns about the surrounding events.
Huobi and BTC.TOP are suspending their operations
It’s not a secret that China is a huge business center for cryptocurrencies and it accounts for 70 percent of the world’s crypto supply. After Beijing announced about its efforts to crack down on Bitcoin trading and mining, Chinese mining operators are suspending their operations including Huobi and BTC.TOP.
Huobi twitted a post to ask clients “not to worry and calm down”. What concerns the next step of the platform, Huobi Mall said, “Meanwhile, we’re contacting overseas service providers, to pave way for exports of mining rigs in the future”.
BTC.TOP announced that in the long term, nearly all of Chinese crypto mining rigs will be sold overseas. The BTC.TOP team is planning to contact mining business in North America.
HashCow will comply with governmental regulations
HashCow is another well-known crypto miner. It has 10 mining sites in Chinese provinces and sells computing power to investors.
Hash Cow said it would fully comply with government regulations. HashCow would halt buying new bitcoin mining rigs. In a statement to clients, HashCow promised full refund to those investors who had placed orders for computing powers but had not yet started mining.
Beijing banned crypto exchanges in 2017. One can say that China lost its position as a global crypto trading center long ago. On the other hand, it’s difficult to underestimate the influence of Eastern changes on the world crypto arena.
Crypto mining is dirty business, isn’t it?
According to the studies, the annual energy consumption of China’s crypto miners is expected to peak in 2024. The estimated figure will be at about 297 terawatt-hours. That is greater than all the power consumption by Italy in 2016.
Beijing wants to shut down crypto-mining activities. Their consumption of electricity often goes from coal-fired power plants while China pledged to manage its carbon emissions. Current actions of the Chinese government reaffirm its position to the crypto business.
The founder of BTC.TOP predicts the rise of US and European mining pools. He wrote, “Eventually, China will lose crypto computing power to foreign markets as well.”
Are crypto and tulip mania the same?
At the same time, China has accepted the blockchain technology and it plans to have its own digital yuan under the control of the central bank. A co-founder of a government-backed public blockchain network in China said, “The Chinese government does not like the highly volatile, speculative nature of the cryptocurrency market”.
They often regard the crypto concept with the tulip mania. Tulip mania took place in the 17th century and it’s well known as the first financial bubble in recorded history. The chief investment officer at Novem Arcae Technologies, Chen Jiahe said, “The only difference is that after the tulip bubble burst, there were still some beautiful flowers left. But when the virtual currency bubble bursts, what would be left are merely some computer codes.”