The price of Bitcoin has fallen sharply today, following news of increased regulatory oversight in China. Prices are expected to fall further as the Chinese government has vowed to increase its control over the country’s cryptocurrency markets.
The People’s Bank of China (PBoC) wants to protect Chinese investors from falling prey to scams and frauds. To do this, they issued regulations aimed at regulating Initial Coin Offerings (aka ICOs), a means of raising capital for blockchain companies with the help of cryptocurrencies. The regulations, however, don’t affect cryptocurrencies themselves, and are aimed at keeping Chinese investors safe.
Amidst the latest cryptocurrency crackdown in China, many of these digital tokens have fallen by more than 100%. As a result, the Straits Times reported yesterday that the value of all cryptocurrencies is expected to fall to $130 billion by the end of July.. Read more about will cryptocurrency crash and let us know what you think.China continues to struggle with cryptocurrencies, which has led to a sharp drop in GPU prices in the country. The measure also led to a global drop in the value of bitcoin as cryptocurrency mining was halted.
Bitcoin miners in southwest China’s Sichuan province were shut down Sunday after local authorities banned all mining activities in the area on Friday, state-run Global Times reported. Authorities in other mining centers in the north and southwest of the country have taken similar steps, meaning more than 90 percent of China’s bitcoin mining capacity could be shut down.
Today we are witnessing a historic event in bitcoin mining, all mining farms (about 8 million kW of power) will be shut down at 12pm Beijing time, today the price in Harare has already dropped significantly after the Sichuan government announced the closure of bitcoin mining farms in Sichuan pic.twitter.com/xRfqMCgWY1
– Molly (@bigmagicdao) 19. June 2021
China has effectively shunned cryptocurrency exchanges after a rule change in 2017, but foreign-based OTC platforms are still active. With the country introducing stricter rules for all financial services related to cryptocurrencies that Chinese citizens can obtain, these OTC platforms are going bankrupt.
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For those who don’t know: Mining cryptocurrencies relies more on a computer’s GPU capabilities than on the CPU. Cryptosphere uses high performance GPUs to increase processing power.
With mining being frowned upon, if not outright banned, in most parts of the country, demand for GPUs has plummeted. As cryptocurrency farms sell their mining equipment, mainly GPUs, prices continue to fall.
The Nvidia Quadro p1000 (released in 2017) retails for 2,429 yuan, or $376, according to The Register. At the time of writing, the RTX 3060 can be purchased for just 4,799 yuan (about $741 USD). It was previously reported that the card would sell for around ¥13,499 ($2087). Both awards come from JD.com, a popular Chinese e-commerce website.
Given Nvidia’s recent announcement to reduce the mining capabilities of its RTX GPUs, this means good news for gamers and PC builders who couldn’t get these GPUs due to their extreme scarcity, as miners have been buying up all new stock.
The price of bitcoin fell after the introduction of the new rules, as did that of Ethereum. Bitcoin fell more than 10 percent on Monday, and Ethereum also hit a five-week low, according to a report from Reuters.
The price drop was a result of the sell-off, and the People’s Bank of China has urged other Chinese banks and financial institutions to tighten controls on exchanges and other cryptocurrency transactions.
The market recovered slightly on Tuesday morning, but then experienced another sharp decline. At the time of writing, BTC is down 2.97% at $32,193.70 and ETH is down 6.16% at $1,895.29.
The relevant departments of the People’s Bank of China have determined that virtual currency trading disrupts normal economic and financial order, creates risks for illegal cross-border asset transfers, money laundering and other illegal and criminal activities, and seriously jeopardizes the security of public funds. Banks and payment institutions must strictly comply with the bitcoin risk prevention notice and the token issuance financing risk prevention notice, as well as other regulatory requirements, meet their customer identification obligations in good faith and not provide account opening, registration and processing services, the People’s Bank of China said in a statement.
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Someone who writes, edits, films, presents technology programs and races virtual machines in their spare time. You can contact Yadullah at [email protected] or follow him on Instagram or Twitter.
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