• Fri. Mar 1st, 2024

Crypto companies flee China after Beijing outlaws cryptocurrencies

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Oct 10, 2021
Chinese Crypto-Investors Moving Funds Out of China

To say that cryptocurrencies have become a global phenomenon would be an understatement. Not only have they become one of the hottest commodities to trade, but even countries can’t seem to get enough of it. Reddit and discord groups for cryptocurrencies have grown exponentially in a short span of time showing that people are at least interested in cryptocurrencies as a whole.

However, the world of cryptocurrencies took a massive hit last month when China had officially banned cryptocurrencies. And following that swift decision, major companies quickly had to close up shop and move out from their home country. And even though most people could not understand why china banning cryptocurrencies was so important, it was still a massive hit to the market.

One of the major reasons why China shutting down cryptocurrencies was such a big deal was because the renaissance of crypto mining really began over there. Various international companies would go through great pains to set up shop in China to mine cryptocurrencies and it was a booming business.

Seeing how China had the talent, cheap electricity, and infrastructure to allow for such thorough expansion. And since companies had yet to tap into the market of other countries, China was more or less the only country that specialized in crypto mining. It also helped that the country had so much space, that mining companies could essentially expand indefinitely.

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While China had yet to bring down the hammer on crypto companies throughout the country, news had already spread. Companies were already making plans on moving out off the country to somewhere else. Even though it was not certain where all of these massive companies would go, they just knew that they had to leave Mainland China.

Some companies moved their operations to Singapore, while others tried moving into Texas. While electricity was not as cheap as the Chinese market, it did have plenty of room to expand. Various companies joined together and have started to work on a massive mining plant in the heart of texas to ensure the future of their company.

Other companies moved on to countries like Uzbekistan, which did not offer much space but did have electricity that was cheaper than China. Finally, some companies moved to Russia and started mining there.

When news for China clamping down on cryptocurrencies first broke out, the market did react in an understandable way. Rices started to tank and the market looked like it was not going to recover. However, because so many countries have even accepted the use of cryptocurrencies, a lot more people are getting into it. Therefore, the world of cryptocurrencies will very much be fine even after the harsh ban that China has recently imposed.

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