China’s power move of stopping all crypto mining operations has caused severe damage to the crypto industry. The world’s biggest cryptocurrencies bitcoin (BTC-USD) and Ethereum (ETH-USD) are facing constant declines as China continues to deepen its crypto mining crackdown.
The crackdown that China imposed on the crypto mining industry in its biggest bitcoin-producing provinces caused a huge decline in the bitcoin mining industry. The areas of crackdown implementation include China’s second-largest bitcoin mining province which is the southwest province of Sichuan.
Crypto mining centers and projects were ordered to close down by the Sichuan officials. They emphasized the order in the province which put a lot of pressure on the largest and the most important markets for crypto trading and mining.
The plummet in the bitcoin and Ethereum value came about when the vice-premier of China, Liu Hu stated last month that the country would majorly crackdown. As per him, the crackdown would be on any activities related to securities on an illegal route as well as severely punish those who are involved in illegal financial operations.
The value of bitcoin, the world’s largest and most valuable crypto, fell below $35,000 (25,341 pounds) on the real-time charts where it fell from 7.9% to 33,596 USD. On the other hand, Ethereum which has the world’s second-largest market capital crashed 9.2% and traded at $2,065. The meme token Dogecoin which was steadily growing on the charts and became a close competitor of Bitcoin dropped 12.5% and traded at $0.26 per share in the season.
In total, the cryptocurrency market value reduced to $1.4tn in the last twenty-four hours and lost approximately 8% as per the data reported by CoinMarketCap.
Lately, countries over the world have been trying to come up with ways to reduce the carbon footprint that comes from bitcoin mining which uses huge amounts of energy. Bitcoin miners in North America have been working to bring light to the energy consumption that Bitcoin mining takes. They are working to bring transparency to it through the BMC (Bitcoin Mining Council).
Controversy was also sparked by the Tesla owner Elon Musk who stated that he will not be accepting payments in bitcoin for the car due to the carbon footprint it generates.