Bitcoin completely "turned off" in China! The National Development and Reform Commission announced an important decision with a very firm attitude

Time:2022-01-10 Source: 771 views Trending Copy share

This is undoubtedly a very important news for the Chinese virtual currency market.

According to the "Global Times" report on January 10, the official website of the National Development and Reform Commission announced that the "Decision of the National Development and Reform Commission on Amending the "Industrial Structure Adjustment Guidance Catalogue (2019 Edition)" has been reviewed and approved, which was included in the Eliminated projects include "virtual currency 'mining' activities".

This means that the Bitcoin hype and its related mining activities that have been popular in recent years have completely "turned off" in China. It is worth noting that the word "elimination" used in the "Decision" of the National Development and Reform Commission shows that the state is very determined to completely ban Bitcoin and other virtual currency "mining activities".

In the final analysis, virtual currencies such as Bitcoin are purely hyped with capital. They are neither endorsed by any national credit nor have any actual value to support them, and any transactions related to them are purely investment speculation. . This so-called "currency" is easily used by criminal groups and becomes a tool for many illegal transactions such as money laundering, drug trafficking, and dissemination of anti-human information, which endangers the stability of the country and society. Letting these virtual currencies spread freely will also have an impact on the national legal currency, disrupt the order of foreign exchange management, and cause financial risks.

In recent years, under the blessing of "celebrities" such as Musk, virtual currency has caused individual investors in the world to follow suit. There are also a large number of individuals and enterprises in China who are willing to spend huge sums of money to frantically speculate on coins. Accompanied by the ups and downs of the currency value, the wealth of countless people has been lost in the pursuit of ups and downs. Many ordinary people who follow the trend and hype have become the "leek" of the capital predators.

This kind of capital speculation is quite unfavorable for the long-term development of the national economy.

If a company invests a large amount of funds into the "currency circle", it will invisibly squeeze out the effective investment of social funds, causing the real economy that could benefit the country and the people to lose blood. In the long run, in addition to the rounds of carnivals of capital, the real economy will become more and more depressed. This kind of hype, a country like the United States that has mastered the upstream of the financial "faucet" may be able to play, but it will definitely not work in China. Because China does not allow capital to profit from idling and "cutting leeks".

There are also "mining activities", which are also extremely harmful to the country. The most direct impact is that they consume a lot of energy.

Everyone knows that "mining" requires a lot of electricity. Not long ago, a professor at Trinity University Dublin made relevant calculations and said that the current total electricity consumption of global bitcoin "mining activities" is already equivalent to the electricity consumption of a medium-sized country. Other statistics show that Bitcoin mining alone consumes more than 133 terawatt hours of electricity every year. What is the concept of a terawatt hour? That's 1 billion kWh of electricity. Also, with each bitcoin mined, it becomes more difficult to mine the next one and consumes more power. In other words, in the future, most of the electricity in countries around the world will be wasted in meaningless "virtual currency" mining, which is equivalent to the use of these precious energy in vain.

Although China's electricity production is very strong, China's electricity also serves the people and is not allowed to be wasted like this. Moreover, China is a responsible big country, and is determined to take the lead in setting an example of environmental protection in the world, and achieve the goal of carbon peaking and carbon neutrality that it has promised. The existence of virtual currency mining activities is completely contrary to the "dual carbon" goal proposed by the state.

No matter from which point of view, bitcoin currency is harmful and not beneficial. Capital from other countries such as the United States is keen to speculate on currency, which is their own business. China can’t control them, but it can be a better self. The National Development and Reform Commission has cut the cancer of "virtual currency" cleanly this time, which is really heartwarming.

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