All Crypto Currencies Losing Value after possible BAN from China
All major cryptocurrencies suffered heavy losses in the last 24 hours before easing slightly on Monday morning. The blow came after China exerted regulatory pressure to force the closure of cryptocurrency operations there.
Bitcoin dropped to 18% from Sunday, while the recently increased ripple (XRP) fell 35%. The top 15 cryptocurrencies fell, although Ethereum had the strongest rebound and its second cryptocurrency position was around the overall market value.
Such oscillations are not uncommon in the cryptocurrency market, and last month’s gains rose sharply from record highs in late December. But the recent case comes after the amazing possibility that China, which hosts the world’s most bitcoin and cryptocurrency servers, could push for closure.
Bloomberg reported last week that China could limit power to some Bitcoin servers, also known as “miners”. They flourished in the countryside because of the abundance of water and cheap coal.
Today, Quartz reported leaked documents that showed that China’s Internet finance regulator is putting local governments under pressure to restrict crypto miners to force a “well-ordered exit” from the company. Government concerns seem to include the waste of resources and the potential financial consequences of a cryptocurrency crash.
The documents from the Internet Financial Risk Reduction Group have called on municipalities not only to use electricity prices, but also land use, taxes and environmental regulations. Pressure on minors. An official contacted by Quarz confirmed the authenticity of some documents, but did not comment on the others.
The majority of bitcoin mines are located in China, and the effects of an “orderly exit” are unclear. Some Chinese cryptomines are already leaving the country, but they may not be able to replicate the cost benefits they had in China.
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The Bitcoin protocol and most cryptocurrencies are designed to increase incentives for miners as the overall performance of the network decreases, so that, at least in theory, the decline in Chinese mining energy could provide a chance for new operators elsewhere. This could be beneficial to the long-term health of the ecosystem, whose advocates have always been concerned about the risk of minors being concentrated in a single, often opaque, authoritarian state.
On Monday morning, CoinMarketCap announced that it had eliminated several Korean crypto currency sacks from its indices because “prices are extremely different from the rest of the world and arbitrage opportunities are limited”. The foreclosure, which occurred without notice, seems to have taken place at midnight on Sunday US EST. Some of the price drops discussed above have been magnified by the change.