Bitcoin enthusiasts prize cryptocurrency as being out of the reach of any government, but three-quarters of the world supply has been produced in just one country: China.
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Electricity needed to power computers used to create new bitcoin go against China’s latest climate goals. The government, which manages its national currency with a tight fist, also frowns on cryptocurrency generally. Legal exchange of bitcoin is also not allowed in China.
On May 21, China’s government vowed to “crackdown on bitcoin mining and trading behavior,” which caused a panic in Cryptocurrencies around the globe. It even caused Bitcoin to drop to $30,000 per coin.
Why It matters: Since most of the crypto mined is coming from China, they ultimately have a huge control in the regulations that they can place to miners. It doesn’t mean that mining will stop, it will just be slowed down. Miners are also deciding to move rigs to the west where there are no regulations yet for mining.