Bitcoin China: State of Cryptocurrencies
China was previously the leading Bitcoin trading country in the world. However, the Bitcoin China trading ban has affected that, with the country’s fiat currency now accounting for less than 1 percent of the total BTC trading volume.While China dominated the cryptocurrency space for a few years with investors playing a crucial role of determining Bitcoin’s prices, the country no longer has that effect on the market. Regulators in China have been clamping down on crypto-related activities by banning cryptocurrency exchanges, ICOs, and crypto events in the country, all of which affected Bitcoin value in the past.
However, the clampdown has seen China lose its place to the United States. According to data Coin Dance last year, the United States led the way in terms of Bitcoin trading volume and investments. China, which previously occupied the first spot dropped down to the fifth, behind the likes of UK, Russia, Venezuela, and the US.The ban on cryptocurrency exchanges led to some major exchanges in China moving to countries with more crypto-friendly regulations. Due to this, regions like Hong Kong, Malta, Switzerland, and the Cayman Islands are home to some of the biggest crypto exchanges in the world.
Focus on Bitcoin Mining
While most countries in the world are looking to regulate the cryptocurrency space to allow innovation to grow, China is doing the exact opposite. The state had earlier banned cryptocurrency exchanges and crypto-related events in the country, and it wants to clamp down on cryptocurrency mining.China is the leading country in the Bitcoin mining space, with the presence of major mining pools and cheap electricity helping miners in the country. The country is also home to Bitmain, the largest cryptocurrency mining hardware manufacturer.
At the moment, Bitcoin mining venture in China accounts for roughly 70 percent of the total BTC network hash rate. However, the National Development and Reform Commission (NDRC), proposes that the government should ban mining because it is not an economic activity. According to the NRDC, cryptocurrency mining is a waste of resources that doesn’t contribute to the Chinese economy. With the clampdown on crypto activities by regulators, Bitcoin’s state in China continues to deteriorate. It is unclear what future Bitcoin holds in China, but at the moment, it doesn’t look bright.