Bitcoin has periodically come under China’s regulatory fire. However, this time the campaign is sweeping on the hot-footing to possibly clear the grounds for a grand circulation of digital Yuan at the Beijing Winter Olympics in 2022. PALO ALTO, Calif. (PRWEB) June 30, 2021
Vibes from the largest economy in Asia are alarming a community of investors across the globe. With the launch of the digital Yuan, China is seen coming heavily down on bitcoin mining farms. In a discreet course of action, the People’s Bank of China has prohibited all financial institutions from providing crypto services. The scale of the crackdown, as observed, is several times more severe than its previous attempts.
“China is known to do this from time to time,” says Raj Chowdhury, Founder, and CEO of HashCash Consultants.
“Bitcoin has periodically come under China’s regulatory fire. However, this time the campaign is sweeping on the hot-footing to possibly clear the grounds for a grand circulation of digital Yuan at the Beijing Winter Olympics in 2022.”
The depleting mines of Inner Mongolia constitute yet another cause for China to shut the mining rigs operational in the region. Exhaustion of its fossil fuel reserve adding to the environmental pollution from its combustion culminates into a sound reason for China wanting to prohibit the act.
The mining rigs of Inner Mongolia contributed a major portion of 71% of the total mined Bitcoin.
The HashCash chief has previously reacted to certain prominent investors controlling the Bitcoin graph by puffing up a sentiment cloud around the environmental concerns from the greatly power-intensive practice of mining Bitcoins.
However, shutting down Chinese mining farms would have only a short-term dipping for the world’s foremost cryptocurrency, according to Chowdhury.
“Countries like Canada and El Salvador are on the way to establish mining rigs harnessing their renewable resources. Several other countries are to follow suit. Such efforts should remove the environmental concerns shrouding the popularity of Bitcoin,” explains Chowdhury.
“An innovation like cryptocurrency reserves the capacity to disrupt several industries and realize many business concepts. However, growth curves may enter dampened phases caused by several connected events and conditions. This is inherent in any asset class.”
In tune with this analysis, several industry leads refuse to budge from their standing with respect to investment in crypto. Many investors are taking advantage of the dip to add to their wallets. In doing so they also convey a message forbidding rushed purchase and panic-selling of digital assets.
About Raj Chowdhury: Raj Chowdhury is the CEO of HashCash Consultants and a Blockchain pioneer. Raj pioneered the first interbank Trade Finance and Remittance implementation of Blockchain Technology between two of the largest global banks. Raj is an eminent voice in the Blockchain and Cryptocurrency space and actively engages with policymakers in this area. He is a contributor to Economic Times, Business World, CNNMoney and advises industry leaders in the adoption of Blockchain. Raj had been a research associate at MIT’s Microsystems Technology Lab. He is a member of Asha Silicon Valley, a nonprofit committed to education for children in emerging countries. Author of the book ‘The Dark Secret of the Silicon Valley’, Raj is an investor in blockchain and cryptocurrency companies and an active member of the philanthropic community.
Share article on social media or email: