As China’s central government banned bitcoin trading as well as mining, local governments have been taking follow-up measures, but only Xinjiang Uyghur Autonomous Region is not taking any follow-up measures.
On the 18th, Sichuan Province ordered immediate closure of bitcoin mining companies in the province, and all other regions are taking follow-up measures, but Xinjiang is the only exception.
◇ Bloomberg “Xinjiang will be an exception” : Bloomberg News reported on the 31st of last month that China will crack down on bitcoin trading as well as mining at the central government level, but it does not crack down on bitcoin mining in the Xinjiang Uyghur Autonomous Region, a holy city for bitcoin mining. reported that it would not.
Xinjiang is a holy city for bitcoin mining, accounting for 30% of the world’s bitcoin mining. It is mining far more bitcoins than any other region in China.
Chinese authorities are turning a blind eye to bitcoin mining in Xinjiang because it accounts for a significant portion of the region’s gross domestic product (GDP), and the country needs to develop its economy quickly to quell the independence movement, Bloomberg reported.
On the 21st of last month, Deputy Prime Minister Liu He personally announced that he would ban not only bitcoin trading but also mining. This is the first time that China has banned Bitcoin mining at the central government level.
◇ Order to close all companies in Sichuan Province : When the central government made this position, Inner Mongolia Autonomous Region, Yunnan Province, and Sichuan Province announced that they would immediately crack down on bitcoin mining companies in the province. In particular, Sichuan Province ordered the immediate closure of all mining companies in the province on the 18th.
However, the kidney is still unknown. This is because the share of Bitcoin mining in Xinjiang’s GDP cannot be ignored. The GDP of Xinjiang is about 213 billion dollars. Among them, Bitcoin mining accounts for 1.4%. In particular, 25% of Xinjiang’s GDP growth last year came from high-tech industries such as bitcoin mining.
Bitcoin mining is a non-negligible share of Xinjiang’s overall economy.
In addition, Xinjiang has the lowest power generation cost in China. In Xinjiang, coal is sold at half the price of eastern coastal areas. Coal costs less than $30 per ton. Therefore, it is the cheapest place to generate electricity in China.
Moreover, Bitcoin mining consumes only 10% of the total electricity generated in Xinjiang.
◇ Close your eyes on Xinjiang for economic development : Most importantly, the Communist Party must achieve rapid economic development in order to silence the independence forces in Xinjiang.
In fact, a local mining company called ‘B-Top Mining’ posted the following tweet on Twitter regarding the recent central government crackdown on bitcoin mining.
“The CCP and President Xi Jinping’s top priority is to eradicate poverty in Xinjiang rather than crack down on bitcoin mining.”
As a result, experts believe that Xinjiang will be an exception to the crackdown on bitcoin mining, and if Xinjiang joins the crackdown on bitcoin holdings, it will have a huge impact on the bitcoin market.
◇ Cryptocurrency plunged on news of strengthening Sichuan Province crackdown : Meanwhile, on the 19th, Sichuan Province ordered all mining companies to shut down immediately, causing cryptocurrency (virtual currency) to plummet all at once.
As of 7:00 am on the 19th (Korean time), on CoinMarketCap, a global market relay site, Bitcoin is recording a drop of 5.72% from 24 hours ago to $35,571.
Ethereum, the second largest by market cap, is down 5.45% from 24 hours ago to $2,214. Cardano (Ada) is down 3.84% and Dogecoin is down 3.89%, respectively.
At the same time, on Upbit, a domestic cryptocurrency trading site, all cryptocurrencies are also plummeting, with Bitcoin being traded at 42,445,000 won, down 5.37% from 24 hours ago.
