How China's Crypto Crackdown Could Change Bitcoin Mining
Digital currencies crashed hard following China's latest regulatory blow against them, wiping out nearly $400 billion in total market value. But as China tightens its rules for bitcoin (CRYPTO: BTC), more of the currency's miners seem ready to move to friendlier locales -- and investors who sell now amid the shock and fallout of China's choices might miss out on a brighter future.
On June 21, the People's Bank of China urged payment firms and banks to scrutinize and shut down the accounts of individuals involved in crypto transactions. Earlier, the Government authorities also announced a crackdown on crypto mining operations in the Sichuan province. These developments are the latest stringent crypto regulations China has imposed in recent months.
According to SupChina, China's mining pools -- AntPool, F2Pool, Huobi Pool, and Poolin -- contributed over 50% of the global bitcoin processing power in the past 12 months. So you can understand why, in the wake of these actions, bitcoin dropped to $28,600, its lowest level since the start of 2021. After recovering from that initial shock, it now trades at $34,945 -- still 81% below its highest level on April 12, 2021.
Source Fool.com
