Since their inception in 2009, cryptocurrencies have still been able to grow despite all of the odds. Not only has it become one of the biggest types of currencies in the world, but it has also managed to become very accepted among various countries. Even a variety of companies now make exceptions for cryptocurrencies, given that they are so much more convenient.
And one of the biggest countries that allowed cryptocurrencies to grow to the level that they are was China. China was critical to the growth of cryptocurrencies, as companies could mine the cryptocurrencies that they wanted at an incredible profit. In fact, in its prime, China had the most crypto mining businesses in the world.
However, recently they have taken something of a very hard stance against cryptocurrencies. They soon went from the biggest supporter of cryptocurrencies in the world, to its biggest critic. Where it was once the country with the most crypto mining businesses, China soon became the first country in the world to outright ban them. While most companies were obviously quite scared by this new decision, in the long run it did not manage to change much.
Of course, soon after China banned cryptocurrencies in the country, various crypto mining companies had to move shop. It was one of the biggest migrations of companies in an industry from one country to another. Some companies moved to Uzbekistan which offers cheap yet plentiful electricity, while others moved on to singapore, for its daily similar style and culture.
But despite all of these things, cryptocurrency has still been going strong. Since the announcement and enactment of China’s anti-crypto laws, the market has not crashed and burned like many expected. In fact, quite the opposite happened. Cryptocurrency grew significantly following the announcement, almost as an act of defiance. And with the different crypto mining companies starting to work on their fullest capacity, the market will not stop any time soon.
The Chinese government has claimed that the major reason for banning cryptocurrencies in the country is the environmental concern. And even though cryptocurrencies do have a significant carbon footprint, many are skeptical for their reasons. They believe that China is planning to launch its personal ecurrency, which it can use to further gain advantage with other countries. Pand with the rest of the crypto market suffering, their cryptocurrency will not see any competition.
Regardless of their reasons for banning cryptocurrencies, it has not been as bad as people thought. Since their decision has been out in the air, the prices of cryptocurrencies have not been rising as much. But the market is still recovering and shows great promise in the future.