CHINA BANS CRYPTO

THIS TIME, IT MEANS BUSINESS

AFTER THE RESTRICTIONS IMPOSED on cryptocurrency mining this summer, the Chinese government has declared that all transactions of such currencies are illegal. This isn’t a new thing. Virtual currencies were first ‘banned’ in 2009. Bitcoin transactions by banks were banned in 2013. In 2017, there were bans on exchanges. In total, there have been 19 attempts to stifle the market, but each time, it seems to thrive. This time, all citizens trading in coins are involved in illegal financial activity; the law singles out overseas exchanges providing services within China. One exemption is the digital Yuan (e-CYU) cryptocurrency, which is under government control. The fact the process chews through a lot of electricity doesn’t help, given the current shortages. Has this caused Bitcoin to plummet? No, it merely wobbled and bounced back. China’s mining boom is over and the big players have started moving abroad. Texas currently has some of the world’s cheapest electricity and is a popular new home for miners.