Why China Banned Mining? Here’s A Few Theories

One of the 2021 biggest stories was the China ban on BTC mining but why did China ban mining exactly? Here are a few theories of why that could be the case, as we are reading more today in our latest crypto news.

The news affected Bitcoin’s price and gave ammunition to the naysayers that believe that governments will outlaw BTC. The network kept working without an issue and recovered its hashrate in record time as it gained decentralization. One of the reasons is the Digital Yuan CBDC launch. This is as simple as it gets so when China started cracking down on miners, they started rolling out their own coin that will enable mass surveillance as well as unbanking of dissidents.

1/ The CCP officially banning #Bitcoin should come as no surprise.

They're literally rolling out their own coin (a CBDC) that will enable the mass surveillance and unbanking of dissidents.#Bitcoin is at complete odds with that. Dictatorships don't like freedom money.

— Lucas Nuzzi (@LucasNuzzi) June 21, 2021

The second reason is the frequent blackouts in China due to energy issues. According to the Beijing Economic and Information Bureau with the concerns about energy consumption being related to the activities. The rotating Chairman of the Blockchain Special Committee of China claimed that the country’s environmental requirements will lead to crypto mining being strictly regulated.
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Another reason is the cleaner energy sources. The private power plants in China were the start of the century and the investors built thousands of hydropower stations because they saw them as a constant cash flow. The regions saw them as a sign of progress and a solution to their energy issues.

The main reason for the decommissioning seemed to be repairing the flow of the rivers and hydropower stations were always one of the most important factors restricting the ecology of the Sichuan rivers according to Wang Hua. He noted that the government is trying to get rid of these plans which could explain the article’s tone as it was trying to get investors to stay away from these hydropower stations.

The next reason is the new China Model. If China abandoned the Silicon Valley model, it will be replaced with something new and surely China-centric. But why is this model concerning for most? Will they crackdown on people and companies that have too much power that is working on a global scale? The country introduced the concept that China is cracking down on its biggest tech executives. Also, China makes Bitcoin hard to use and this was evident with the ban on BTC mining. Yin Youping as the Deputy Director of the Financial Consumer Rights Protection Bureau of the China Central Bank said that we should remind the people that virtual currencies like BTC are not legal tender with no actual value support.