South Korean & Chinese Bitcoin Market will be shutdown?!

According to local chinese news sources, Chinese authorities had a notice being sent around telling them to “guide” an “orderly exit” for cryptocurrency mining operations, as they begin shutting down their mines.

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These sources said that the notice was issued by an inter-agency task force assigned to looking into risks in internet finance. Electricity prices are dirt cheap in the remote areas of China, where there the temperatures in those areas is also super-low. This is perfect for crypto miners as operating gigantic mines uses lots of computing power, and that all generates heat. So mining in remote China is a perfect blend: cheap electricity and low temperatures, it’s like Christmas everyday for miners.

China wants to control or even ban BitCoin overall because the Government don’t like it, it seems like China could (theoretically) stop Bitcoin mining by blocking the protocol using the Great Firewall or otherwise filtering bitcoin out.

I am personally of the opinion that China swiftly killing off its cryptocurrency mining industry overnight would be to the great benefit of humanity. The sheer amount of electricity it wastes is an environmental disaster. I see the benefits simply non-existent using BitCoin, it goes up and down and it’s all depending on something you never see yourself, for example SETI@Home and Folding@Home actually solve real problems while BitCoin does nothing except wasting useful resources.

South Korea is going similar ways now, the South Korean justice minister said he’s preparing a bill a ban on cryptocurrency trading through South Korean exchanges. Park Sang-ki said in a press conference: “There are great concerns regarding virtual currencies and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges”.

Resource

  • China wants an “orderly exit” from bitcoin mining (qz.com)
  • China tightens cryptocurrency ban with new directive (theverge.com)
  • From China to Singapore, Asian countries are increasingly uneasy with the rise of bitcoin (cnbc.com)
  • Why has China declared war on bitcoin and digital currencies? (scmp.com)
  • China’s ‘Bitcoin Ban’ No Match For Stateless Cryptocurrency Market (forbes.com)

One thought on “South Korean & Chinese Bitcoin Market will be shutdown?!

  1. This could crash the market. If the Chinese and Koreans tries to sell their BTC on foreign exchanges they could pull the prices below 2-3k $ per bitcoin.

    If China or Korea does it, other non-democratic countries may follow I’m afraid. Crazy times we’re living in.

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