Bitcoin collapses: China closes 90% of mining farms


He Bitcoin keep going In free fall since a few weeks. It reached over $60,000 in April, and today it is trading at $32,000, half that. In a single day it has lost 8%, and others such as Etherium or Cardano, more than 11%. And it is anticipated that the fall continues at least in the next few daysafter the news that occurred today.

A few weeks ago Chinawhich is the main cryptocurrency market because electricity is cheap there, announced that Banned banks from making cryptocurrency transactionswhich started the collapse of Bitcoin and other cryptocurrencies.

But this weekend he has taken a more forceful step, by prohibiting power companies from supplying electricity to mining farms.

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As explained by the Chinese outlet Global Times, the news has fallen like a stone in the province of Sichuan, which is where most of the country’s mining farms are concentrated, since electricity is abundant there, and cheaper.

With this ban, it is estimated that 90% of the mining farms in the country have already closedor are required to. That supposes more than 30% of all mining farms globallysince the third part are in China.

Although the Chinese government itself recognizes that cryptocurrencies can help the local economy, is a financial asset that you cannot controlThat’s why he doesn’t like it at all. He is also concerned about the brutal electricity consumption, which could skyrocket. So, at least for now, probably until they regularize it, have decided to ban cryptocurrency mining.

The exit window is closing, and we are struggling to find mines abroad to place our mining devices.“, explained one of these businessmen to Global Times.

Cryptocurrencies are like a roller coaster. Just two months ago they were breaking price records, but a couple of tweets by Elon Musk, and now the Chinese government, have plummeted their value.

Experts believe that it will rise again, but it is these unbridled rises and falls, due to things as frivolous as a performance by Elon Musk on television, that worry governments and economists.