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China's ban forces bitcoin miners to sell out

I haven't been following this story as closely as I should but, it would seem that China has banned cryptocurrency mining which is causing a rift in the hardware world with machines used to mine crypto are selling for scrap.

According to the article the ban is to reinforce the state run Cryptocurrency while also limiting all the "bad" stuff associated with anonymous money transactions.

Here are a couple quotes that stand out.

 China's sweeping ban on cryptocurrency mining has paralysed an industry that accounts for over half of global bitcoin production, as miners dump machines in despair or seek refuge in places such as Texas or Kazakhstan.

Texas? really??

SHANGHAI, June 25 (Reuters) - China's sweeping ban on cryptocurrency mining has paralysed an industry that accounts for over half of global bitcoin production, as miners dump machines in despair or seek refuge in places such as Texas or Kazakhstan.

"Many miners are exiting the business to comply with government policies," said Mike Huang, operator of a cryptomining farm in the southwest province of Sichuan.

"Mining machines are selling like scrap metal."

The local government of Sichuan, China's No.2 bitcoin mining centre after Xinjiang, issued a ban on cryptomining a week ago.

 China's State Council, or cabinet, vowed to crack down on bitcoin trading and mining in late May, seeking to fend off financial risks after the global bitcoin mania revived Chinese speculative trading in cryptocurrencies. The clampdown comes as China's central bank is testing its own digital currency.

Chinese authorities say cryptocurrencies disrupt economic order, and facilitate illegal asset transfers and money laundering. Analysts say Beijing is also worried about potential competition for the digital yuan and that the power-hungry business of bitcoin mining could damage the environment.

Of course with such a ban and crypto sell off the prices on Bitcoin have dropped and basically put all other crypto trades on hold.  This will put a serious damper on the "get rich quick'ers" while also opening up the GPU market again allowing gamers a chance to finally get that upgrade they have been looking for instead of having the delivery truck get re-routed to a Chinese mining facility.

And, one nice thing about the lull is that the Crypto Zealots on social media will finally be shutting the F up while they lick their wounds and attempt to make amends with the "friends" they alienated by offering unsolicited advice on buying Crypto. 

Serves them right.  tongue smile

Related Web URL: https://www.reuters.com/technology/chinas-ban-forc...

 

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