China: probable ban on mining activities in the country

China: mining ban in the country likely - mining China

During the last period China has stated several times that he would like to make an important decision regarding the cryptocurrency mining or its ban from the country

At the moment, the major mining "companies" are based in China, the reasons are different among the various there is the possibility of accessing electricity with very low costs, thus allowing those who work in mining to obtain excellent earnings, even when the market is clearly downward, like last year when the BTC they had fallen below the 4 thousand dollars. 

China would however be considering a cryptocurrency mining ban from the country. The reasons for this decision are two, the first concerns the economy of the country (which could be put in crisis by this activity), the second, instead, is due to the significant environmental damage caused by excessive energy consumption. 

China opposes the illegal Mining companies and thinks about the reasons for the ban

Meanwhile, China has started working on the contrast of illegal mining operations, that with the growth of the value of cryptocurrencies has seen a really sudden increase. At the moment about 12 suspects have been stopped in the Chinese province of Jiangsu. The union that deals with the control of theft of electricity discovered a large "factory" illegal mining who owned about 4mila ASIC. The stolen electricity consumption instead caused losses for tens of millions. 

Local authorities are trying to fight back illegal mining as much as possible, which sees the birth of "mining farms" especially in Chinese regions where electricity costs less and is easier to "steal", such as in the Sichuan region where electricity costs are very low thanks to its hydroelectric dams . 

China as well as on the energy front she is very worried about mining because of the problems he is experiencing given the tension with the United States. In fact, the trade war that has been going on for more than two years could damage the health of the Chinese economy, and mining could help threaten both the national currency and the Chinese economy, cause of capital flight. 

According to the IMF, China has good prospects of economic growth for 2019, despite these falling from 6,6% to 6,2. Furthermore, a second contraction could also be noted in the future which would bring China's growth in 2020 to only 6%. Many thought that the current economic situation is undermining to the growth of the country and cryptocurrencies are increasingly taking hold in China, thus further lowering the value of the traditional currency. For this reason, the Chinese government could think of a cryptocurrency regulation system a probable mining ban.