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China Government Forbidding The (Mining) Action Of The Cryptocurrency But The Result Is Not Meet Their Expectation


The Chinese mainland government has banned citizens from conducting cryptocurrency (mining) in May, and on September 24, 10 ministries including the People’s Bank of China, the State Cyberspace Administration of China, and the Supreme People’s Court jointly issued relevant cryptocurrency mining Monitoring laws; the "Notice on Further Preventing and Disposing of the Risks of Hype in Virtual Currency Transactions" defines business activities related to cryptocurrencies as illegal financial activities, and emphasizes services such as virtual currency trading, issuance (ICO), and illegal fund-raising "All are strictly prohibited." The reason for the big move is claimed to be to avoid the large amount of electricity consumption caused by mining and cause power supply problems in the community. Because mainland China has long been a Bitcoin mining center, according to past statistics, about 65% to 75% of the world's mining activities are on the mainland, so the introduction of the law at that time caused a sharp drop in cryptocurrencies.

However, according to the latest data released by 360 Government Enterprise Security Group in November, the reduction of mining activities in China is not as good as the government expected. On average, there are still at least 109,000 "mines" operating in China every day. The fundamental reason is actually very simple. ; Because just as one of the words in (Tor Jo Denning, "The Federation of Trade Unions and Strikes", London Edition, 1860, pp. 35 and 36) said: Once capital has appropriate profits, it will be bold. If there is 10% profit, it is guaranteed to be used everywhere; if there is 20% profit, it will become active; if there is 50% profit, it will take risks; for 100% profit, it will dare to trample on all human laws; yes With 300% of the profit, it dares to commit any crime, even risking hanging its head. The value of currencies such as Bitcoin and Ethereum is extremely high. On average, after 6 months of mining, it will (return the cost), and all the profits will be made afterward. In addition, cryptocurrency trading provides a channel for capital to allow citizens in the mainland to bypass the mainland government’s strict supervision of foreign exchange flows.
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