If there has been one country that has been at the forefront of anti cryptocurrency sentiments, it is the People’s Republic of China. Last year was the best year for cryptocurrencies across the board with most of them reaching their all time highs towards the end of the month. That amazing year however, was not without difficulties. It was wrought by aggressive action being taken by China to introduce regulations that would entail a blanket ban on any and all ICO trading within the country.
The cryptocurrencies rose struggled for a bit since China was one of the countries with the highest trading volumes for cryptocurrencies in the world but they recovered and reached their new all time highs. China has since kept up its efforts to curb cryptocurrencies and completely banned the CNY based trading with cryptocurrencies a few months ago. It has not yet let up on its continued fight against Bitcoins in the latest move to stamp out the Bitcoin mining operations in the country.
Last week saw the confiscation of over 600 computers and other hardware pertaining to Bitcoin mining processes in the city of Tianjin by Chinese authorities.
Illegal Bitcoin Mining in China
Everything that’s related to Bitcoins has been banned in China, especially the process of Bitcoin mining. Since China happens to provide its citizens with subsidized electricity due to the massive coal reserves the country has, would be miners have sought to take advantage of that. Bitcoin mining works on the proof of work algorithm which uses a lot of computational and electrical power. Bitcoin mining is cheaper in China due to reduced electricity utility costs.
An investigation was commenced in order to look into any abnormally large usage of electricity in Tianjin. This led the investigators to find a local operator from the Chinese energy sector in Tianjin who reported unusual activity. Following the leads, investigators ended up at a location which was conducting a significantly large mining operation with over 600 machines conducting the process of Bitcoin mining.
Following the confiscation of the 600 computers and the high powered fans put in place to cool the systems down, the Bitcoin mining operation being illegally conducted in Tianjin to be completely shut down. It is because of this crack down that many Bitcoin mining operations have shut down or they have been moved elsewhere.
China’s Stance Will Not Change
With passing time, Bitcoin and other cryptocurrencies are seeing a widespread adoption and proper regulatory structures that will work with the world of cryptocurrencies rather than against it. Whether or not China’s stance on cryptocurrencies was going to see a change was something that was being speculated but with the recent continuation of the crack down on the Bitcoin mining operation in Tianjin, it seems that the stance will not change any time soon.
It seems like China’s crackdown will continue without pause for the foreseeable future until it is actually able to bring down Bitcoin or if it finally realizes that it’s impossible and gives up.
Charlie Shrem is a Bitcoin pioneer, a social economist and digital currency trader. His work in this field is legendary. In 2011, at the dawn of the crypto era, he founded BitInstant, the first and largest Bitcoin company. In 2013, he founded the Bitcoin Foundation and serve as its vice chairman. Since then, Charlie has advised more than a dozen digital currency companies, launched and managed numerous partnerships between crypto and non-crypto companies, and is the go-to guy for some of the world’s wealthiest entrepreneurs. In short, he is the ultimate insider at the epicenter of the crypto universe.
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