Despite the fact that China has not been very friendly with the idea of decentralization and the locals still can’t use cryptocurrency for anything at all due to strict measure but then it is also true that China provides a lot of the hash rate for cryptocurrencies such as Bitcoin and Ethereum and what it has to say or impose in the form of regulations does put a strain on its price.
Today, Bitcoin and the rest of the crypto market have taken a negative hit as China announces to bring even more strict regulations into effect. A whistleblower program will also affect the Bitcoin miners in the region, thus affecting the mining rate and the performance of Bitcoin in the crypto market and showing as Bitcoin’s price has fallen pretty drastically.
China is not on Board with the Idea of Bitcoin Mining or even Trading
China has sent the warning to the crypto industry in its entirety, and most of the warning or the severe zones do target the miners. A severe crackdown has been issued against miners, and given the fact that China brings in a large chunk of Bitcoin’s mining, there is panic, and stability of the crypto market is a question, the traders have all run out of ideas, and the liquidation of the crypto assets is in effect. Since the news of further regulations has hit, the mainstream crypto market has seen three consecutive days of crashes and instability.
It is important to understand that without all that mining taking place as China has raked a crackdown against miners, the cryptocurrency’s hash rate is in trouble, which slows down the process of creating blocks onto the blockchain, thus hurting the efficiency and speed of the decentralized network.
The asset has hit the lows of $30k at the moment, and it is possible that it can go way down if Bitcoin mining doesn’t reach any stable curve in the near future. The consistent rise in Bitcoin’s price in the past has led to the government asking for and implementing stricter regulatory oversight for the crypto market, and if soon nothing is done regarding this issue, then the price might plummet deeper off the charts.