It is difficult to see clearly in the future of Bitcoin. Cryptocurrency, and the industry as a whole, have been rocked recently by Tesla’s decision to stop taking bitcoin orders, with Elon Musk blaming the asset’s environmental cost. China also tightened its restrictions.
The good news as the bad are linked around Bitoin. Elon Musk always rains and shines, especially the rain lately, deploring the environmental footprint of cryptocurrency mining. On the other hand, the digital asset will win legal tender status in El Salvador.
Suspension of mining activities
But investors and speculators are mostly watching what’s going on in China. The country has issued numerous signals which indicate some hostility towards Bitcoin. There is the environmental issue on the one hand, but Beijing is displeased by the very nature of cryptocurrency: Bitcoin indeed escapes any regulation. However, the Chinese government has been trying for a while to tighten its grip on the country’s economy.
China employs two formidable levers. The first is to prohibit access to exchange platforms. The second is even more important: the authorities are demanding the suspension of mining activities in certain provinces. We are not yet talking about an outright ban, but it is just like. For example, mining was stopped in the Xinjiang region, and suspended in Qinghai, after Inner Mongolia introduced new rules to restrict this activity.
In Qinghai, the Ministry of Industry and Information Technology requested the suspension to inspect mining facilities. Inspections whose outcome is unknown, but it could simply be a question of banning mining. For now, these decisions have not had a downward effect on the price of Bitcoin, which is currently on a slightly upward slope.