In 2021, the biggest news in the digital currency world came from China when the country banned Bitcoin mining. Then came the news that the price of Bitcoin was not hampered due to its price, and it did give ammunition even to the naysayers as they feel that the governments are going to outlaw Bitcoin. On the contrary, we heard the network growing despite the hurdles coming from the hash rate found in record time. It was achieved with the help of decentralization, but one big question that remains on the top is why did the country ban mining? To this, several theories surround the reason. We will be discussing a few leading theories that have come up in this regard. You can visit this link to invest in bitcoins and other cryptos like Digital Yuan
The Virtual Yuan – CBDC
One can find this to be straight as one can find it. Once the country witnessed the surge of Bitcoin miners, they started cracking them down. One can find them rolling over their coins and helping them come along with the mass surveillance and the idea of unbanking of several dissidents. Hence at the end of the day, what we can find is the country is now busy killing the mining industry, which has the potential in China to be not less than a billion USD as they want to defy the competition coming from CBDC.
Blackouts
Now the big question is the country facing too many energy issues? If you check the reports, they will come straight and strong. Also, too many months ago, one can find news about the blackout. As per the country’s information bureau called BEIB, too many concerns regarding energy consumption are seen, and many more issues are related. As per several experts, China is facing some environmental issues, and it can lead to several issues, including the digital currency mining that is being regulated sternly. So, now the big question is that they are now planning to get rid of the hydropower stations.
Clean and Green Energy Sources
As per reports based on a few hydropower stations, too many government-friendly media did add too much spice and salt when it comes to reporting about this issue. This has further clashed a lot with the topic discussed above of blackout. As per reports, many private players involved in the power plants domain in China are now starting up the century in a big way. One can find too many investors now developing loads of hydropower stations due to the consistent cash flow. Many more are the regions that are seen coming along with the progress that offers an effective solution to many of the energy issues. However, once we see a good amount of electricity supply in the country that happened in the recent past, we can see many more such issues getting resolved once for all.
The New Model in China
As we know about the theory from Bloomberg, one can find too many founder-driven companies are now gearing up with the said reason. If we see the country leaving the model of Silicon Valley, one can easily replace it with the same. Also, several insiders feel that China wants to stick to its model. This is why the country is now bringing in more players and industries. Now, the big question is, are they as a nation now cracking down over companies and people who are planning to work towards proven scale at the global level. One can find too many people believing about believing the fact that China is now busy cracking down too many more top technical experts. This is not just confined to Bitcoin alone, as one can find it going beyond the same.
Making BTC Challenging to Use
This may not clearly explain reaching out to the idea of banning the country. At the same time, you may not find the country adding too many colors in the theory that you would prefer the best. In one of the events held there in the country, we have seen the country reminding too many digital currencies, including BTC, that they will not make it a legal tender. These also have no real value support, and one can find too many more things to combat the trade of crypto in the market.