It was only the previous week that the world came to know that China sports 70% of the cryptocurrency mining. Also read: China Signals to Give a Fresh Blow to Crypto-Mining Industries. And this is the first time China has come up with something that is extremely surprising to the Cryptocurrency industry. According to the sources, as well as the officials, the Chinese are making plans to ban the cryptocurrency mining activity.
The National Development & Reform Commission of China will announce the elimination, promotion, and restriction of mining activity of cryptocurrency. The management of the microeconomic agency said that they currently lack the minimal conditions for safe production. By the looks of it, the agency also said that mining cryptocurrency is a sheer waste for the country’s resources. On the other hand, they are excruciatingly harmful to the earth’s environment, most importantly the country.
It is true that the mining of cryptocurrency needs a tremendous amount of electricity. Most of the companies which are into cryptocurrency mining are located in the provinces which depend on coal. Mostly because, in the coal-dependent areas, the energy is incredibly cheaper. By the looks of it, the cryptocurrency mining generates around three to 15 ton of CO2 every year. For a long time now, the Asian country has not met the required goals to conserve the environment. Nevertheless, it is finally a good thing that the Chinese authority took the right decision to ditch cryptocurrency mining.
Back in 2017, in September, China also made bans to the Initial Coin Offering. China also said that the Initial Coin Offerings acts as the decentralized marker which is open to fraudulent activities. Due to the ban, around 88 of the Initial Coin Offering exchange platforms were put to an end.
ICOs projects were the first to get banned in China
Around 85 of the ICO projects were also put to rest by the Chinese officials and the government. Measuring the Initial Coin Offerings is extremely easy; nevertheless, it requires a massive jolt of electricity. The cryptocurrency mining activity is often easier when it comes to locating them.
The reason as to why China chose to ban the cryptocurrency mining activity is that they are nothing but wastage of energy. On the other hand, most of the hype of the cryptocurrency is wavering off. Some of the most potent spectators around the world are targeting the cryptocurrencies.
The cryptocurrencies are relatively useless for exchanging of the goods or services due to its pre-existing economics. Moreover, the companies who were obtaining the cryptocurrency along with the patents from the Bank of America are making changes. These companies are slowing down the level of developments and on the other hand, are getting incredibly sceptical.
Both blockchain and cryptocurrency have an incredible consensus algorithm. For a long time now, both blockchain and cryptocurrency have promised overall security which was never fulfilled. Most of the time, even the most decentralized mechanisms are vulnerable. There is a highly likely chance that they would break too.
In the present day scenario, both cryptocurrencies and blockchain are extremely promising. Nevertheless, using the cryptocurrency and blockchain are problematic. And this is where Vitalik Buterin’s scheme of replacing PoW with PoS will benefit the users.