Cryptocurrency restrictions in China reminiscent of the news evergreen. Already four years ago, the ban on bitcoin trading on stock exchanges, among other things, took off the price of bitcoin for a short time. Other bans came this spring: Chinese financial and payment institutions were not allowed to provide cryptocurrency services. Last but not least, the mining of digital currencies was blacklisted.
The latest restrictions were potentially the most serious for bitcoin, as China was the dominant player in its mining field. Whoever benefits the cryptocurrency also automatically contributes to greater cybersecurity of the network.
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If Chinese miners were not replaced by global competition, the bitcoin network would be significantly more vulnerable. However, she dealt with the change in conditions well. Thanks to the development of the cryptocurrency mining market in the United States, the bitcoin network is currently powered by “only” 30 percent lower power than during the spring peak. At the end of June, this indicator was even 50 percent lower than in the current situation.
In this context, many bitcoin holders on social networks are amazed at why bitcoin responded with an immediate sharp fall. According to analysts, price developments primarily reflect the overall situation in the financial markets.
Remember how much bitcoin mining has on the environment:
“The mood is quite nervous about what is happening around the Chinese company Evergrande or the attitude of the American regulator, which is investigating the practice of lending digital coins at interest. Otherwise, however, Chinese regulators have always been extreme in their positions and their current positions are not new, as similar bans have been issued repeatedly in the past, “he said. CNBC Vijay Ayyar ze singapurské kryptoburzy Luno.
“The step of the Chinese central bank is further pushing cryptocurrencies in the largest communist country into the gray zone. So far, however, no country has been able to completely remove cryptocurrencies from the economy. Due to their decentralized nature, this is not even possible, “says Bit.plus director Martin Stránský.
Development of hashrate (computing power) connected to the bitcoin network (exahash units per second)
“In the coming days, this will mean a downward fluctuation in bitcoin or ether prices, however, in my opinion, the market will quickly get used to the situation,” Stránský added.
The social network Twitter announced yesterday that it will allow users to send tips via bitcoin. The company also announced that it is testing a feature that would allow their collections to show on its social network unmistakable tokens (NFT).
What bitcoin mining looks like in practice:
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