The reason mining was banned in China

[fiulpro]

  hey remember the time when we all speculated   how China is gonna just give birth to a cryptocurrency on it's own and bang ! They will try and dominate even the world of cryptocurrency, well guess what ?
Days after mining the Bitcoins that is the king of all cryptocurrencies' was banned , we have a news .!!

*China is going to make it's own currency Renminbi a cryptocurrency *

Well the reports have still yet to be confirmed officially but experts have provided a good Intel. I don't even think that they will provide any Intel ahead of time . They are going to take help from the central bank and turn their own currency into a cryptocurrency.

Well to be honest I think it would be a good experiment when we would be able to see how ! Cryptocurrency + government can work together since it will be a derivative of a bank !


Any ideas about what will happen ? What do you guys think ?

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[Xylber]

If any country is going to start their own cryptocurrency and use it then i think it will be centralized and then their wont be any difference between fiat currency or same country controlled coin. So it can be manipulated and controlled by the govenment. So i think this idea will be very bad one. and most of them wont support it.

It is OBVIOUSLY the case, and thinking the opposite is too naive. Private banks dominate goverments because they have the power to create the money... they are not going to lose that power.


PD: What happened to the answers before mine? Deleted?

[1miau]

Well to be honest I think it would be a good experiment when we would be able to see how ! Cryptocurrency + government can work together since it will be a derivative of a bank !

Any ideas about what will happen ? What do you guys think ?

I don't think a cryptocurrency issued by the Chinese government will work, especially not in China (and not for the people). The communist party of China is well known for their restrictions and they are arresting people who have a different opinion and are opposing the opinion of the communist party.
They'll just use their government-issued cyptocurrency to analyze crypto transactions completely, ban cash and froze the crypto accounts of a person if they are doing something the communist party doesn't like. If China is going to launch a crypto I'm almost sure that it wouldn't be a useful cryptocurrency because it'll be centralized and controlled by the government, not like Bitcoin, where you are your own bank.

[kingplaya4]

Any new crypto, whether it be from JP Morgan or China is bad for BTC, at least initially. It takes money that would be in BTC and puts it elsewhere. There are only so many pieces of the pie. Now if it fails due to the chinese preferring btc, than that could be good in the long term.

[FlightyPouch]

I don't think China will do it. I mean what will be their aim for that? Efficient transaction? China is a big country and I don't think that changing their fiat into crypto currency will be that easy. Some people might know Bitcoin or how to use it but not all of them will be accepting the fact that easily that they will be using crypto currency as a currency for life.

[serjent05]

Are you talking about these story? https://cointelegraph.com/news/official-chinese-currency-renminbi-to-become-cryptocurrency-expert-says. 

First, mining is yet to be banned in china, the proposal is there and still under review.  This is somehow misleading saying that mining is already banned in China but it is not.

[MakeMoneyBtc]

If what you are saying I true, it will be interesting to see how this is going to work because initially cryptocurrencies were designed to be against the governments and it's laws. If China is going to launch their own cryptocurrency I'm sure it's not going to be a normal currency but something they have control of so it cannot anymore be called a cryptocurrency since people are not anymore free to use their coins however they want.

[exchangestolemycoins]

I don't see why a bank/government would want to take something that is opaque and malleable and replace it with something transparent and immutable... It's against their interests.

[Ailmand]

I have read an article before that, the reason behind the mining ban in China was because, they do not want giving out their money to other countries. Now, how is this relatod to cryptocurrency and mining. Well, we all know that thru cryptocurrency money can flaw freely thru blockchain. Now, going back to mining, let's say if a foreign investor invests a mining farm in China, they will just be paying out energy cost and facility cost to mine bitcoin. So, in short China is giving out their resources(electricity) to foreign companies to mine digital money. In other words, they are spreading out money thru cryptocurrency mining which could flow free around the globe.

[Artemis3]

*China is going to make it's own currency Renminbi a cryptocurrency *
Any ideas about what will happen ? What do you guys think ?

If they do it will be some centralized garbage, like Petro which was an absolute failure. Their fiat is not in bad shape, so i see little use for this other than going backwards and ruin their own economy. Hopefully not, people are not going to waste their time with a State backed altcoin when they could just keep using the State backed fiat.

This is actually unrelated to mining, even if you criminalize other coins, mining itself doesn't touch your market, negatively anyway. If anything its positive as some foreign currency will be exchanged for local fiat to keep operations running.

Just because you mine a coin, doesn't mean you have to use it. But those concepts may be too hard to grasp for the average politician...

[fuathan]

Well to be honest I think it would be a good experiment when we would be able to see how ! Cryptocurrency + government can work together since it will be a derivative of a bank !

Any ideas about what will happen ? What do you guys think ?

I don't think a cryptocurrency issued by the Chinese government will work, especially not in China (and not for the people). The communist party of China is well known for their restrictions and they are arresting people who have a different opinion and are opposing the opinion of the communist party.
They'll just use their government-issued cyptocurrency to analyze crypto transactions completely, ban cash and froze the crypto accounts of a person if they are doing something the communist party doesn't like. If China is going to launch a crypto I'm almost sure that it wouldn't be a useful cryptocurrency because it'll be centralized and controlled by the government, not like Bitcoin, where you are your own bank.

Agreed. Also, the Chinese government tries to monitor all of its citizens' any activity (money transactions, internet usage, geographical data, etc.). With this cryptocurrency, they can easily track everything about their people and use it against them anytime. Moreover, the e-payment market in China is the biggest e-payment market in the world. The government won't have any issues when it comes to adoption.

[lyks15]

They was banned mining and did not allowed other company from other countries to build the biggest mining structure in the world then when they get the idea they built their own mining stucture but it fall to loss a million dollar and now they are thinking to have their own crypto? I think this is not feasible to them because I think their knowledge about crypto industry is not enough.

[Pearls Before Swine]

PD: What happened to the answers before mine? Deleted?

Probably, not sure why.

And yes, any crypto created by a gov't or corporation is going to be centralized and under their control, and what they will create is diametrically opposed to the spirit of cryptocurrency and that is to hand over control of one's money to the people.  No 3rd party needed, just the exchange of money between buyer and seller.

I have read an article before that, the reason behind the mining ban in China was because, they do not want giving out their money to other countries.

No country wants that, but China is not exactly known for the freedom it gives its populace and the news that they banned mining falls short of shocking me.  I do think its unfortunate given how active China is in mining and crypto in general.

I don't think a cryptocurrency issued by the Chinese government will work, especially not in China (and not for the people). The communist party of China is well known for their restrictions and they are arresting people who have a different opinion and are opposing the opinion of the communist party.

It might work, but certainly not in the way bitcoin does.  And you are correct about China's reputation for repressing its citizenry.

[BeManga]

hey remember the time when we all speculated   how China is gonna just give birth to a cryptocurrency on it's own and bang ! They will try and dominate even the world of cryptocurrency, well guess what ?
Days after mining the Bitcoins that is the king of all cryptocurrencies' was banned , we have a news .!!

*China is going to make it's own currency Renminbi a cryptocurrency *

Well the reports have still yet to be confirmed officially but experts have provided a good Intel. I don't even think that they will provide any Intel ahead of time . They are going to take help from the central bank and turn their own currency into a cryptocurrency.

Well to be honest I think it would be a good experiment when we would be able to see how ! Cryptocurrency + government can work together since it will be a derivative of a bank !


Any ideas about what will happen ? What do you guys think ?

they only want to adopt blockchain and not bitcoin
there are large miner and bitcoin user in china it might not be good for bitcoin if they leave
but for miners it will be a good thing because there will be less competitor

[2double0]

If a cryptocurrency is pegged to a local currency itself, the only difference here is that Chinese will be able to use Renminbi digitally too instead of just using it through paper money. But they are already able to do that via Bank transfers, so I don't get the actual purpose behind coming up with their own currency-pegged-cryptocurrency. They will not be able to dominate BTC as BTC is now out of reach of any single country to control it as it is being globalized each day with more and more adoption. If they are not going to work with mining and blockchain to help confirm the transactions that will happen in their "local" cryptocurrency, they are surely going to miss the fineness of pleasure a miner feels when mining crypto.

[bittraffic]

Anything can happen with the Chinese. They always wanna explore every thing, lead the way and rule it. If they banned BTC there must a very good reason and so  maybe their new coin are the ones going to b3 mined by those asic miners not BTC. Well soon find out if its possible working with goverment along with crypto.

[Bonsaiav]

I think their ideas and ways can build new ideas for other countries in empowering their own country's currency, and I hope that cryptocurrency and the Chinese government can collaborate well and produce a positive effect on the world of cryptocurrency, even though I doubt it. Because, they usually treat their cryptocurrency like a golden boy and at the same time they also make strict rules for all other cryptos like happened last year, between Neo against Bitcoin, Ethereum and several other mining coins.

[flash101k]

Are you talking about these story? https://cointelegraph.com/news/official-chinese-currency-renminbi-to-become-cryptocurrency-expert-says. 

First, mining is yet to be banned in china, the proposal is there and still under review.  This is somehow misleading saying that mining is already banned in China but it is not.

In fact, Bitcoin mining factories in China have moved to other countries with more favorable conditions. In China, electricity prices have risen, and some restrictions on Bitcoin mining have been made, making the work of all investors stretch. That may be the reason many people misunderstand that China banned mining.

[pooya87]

just because some click bait articles on the internet said "China banned [blank]" it doesn't mean they have really banned [blank], they have been publishing the same thing for years now and they just change the name inside brackets!

besides countries making their own centralized cryptocurrency (aka gov-coin) is not a speculation, it has been happening for a couple of years now and in near future majority of countries will have their own coin. it is just that most of them are waiting to see what happens to those who did it first (eg. Venezuelan, India,...) and see their mistakes and not repeat them to end up with a stronger one.

[morrisgonzalez]

I don't think so China banned mining. Why they do this any strong reason? When it's a profitable way to earn money then why they do this? I also heard before this type of question. But I don't think it will be happen in future.