China is Going to Curb Volatile, Highly Speculative, Economy Endangering Virtual & Crypto Currency Usage Within the Country
China's central bank has finally confirmed that the country is going to ban all the virtual forms of currencies including crypto-currency transactions & mining. China has declared these crypto-currency transactions as an illegal activity within the country.
China's Crypto-currency "blanket ban" produced shockwaves around the world. Bitcoin lost 10 % of its market value and lots of crypto-currency holders flocked to dump their investments altogether.
The following are some logical issues, Implications and conclusions, drawn by the understanding of this China Crypto-currency ban.
A Matter of Highly Volatile Non-Fiat Economy Disruptive Cryptocurrencies:
Crypto-currency is not an experimental phenomenon anymore. Virtual currencies gained popularity almost hundreds of thousands of fold and continuously consumed lots of capital all over the world from small investors to big technology companies like Tesla.
The highly volatile and speculative nature of these virtual currencies is the main concern of many countries including the United States of America and even Europe. These unregulated cryptocurrencies have the potential to be used in illegal and crime-related transactions.
Regulators around the world want to manage some bad aspects associated with virtual currencies and cryptocurrencies like Bitcoin, because such currencies can transform value without any government or bank verification just based on general gossips, speculations going on at the crypto-currency markets at any given time.
Crypto-currency is not a small experimental thing anymore, there is a tremendous amount of money involved in it. Therefore almost every western country is thinking about regulating virtual currencies for eliminating risks involved in their mining and transactions.
The Upcoming US legislation Regarding the Crypto Currencies:
Legislative authorities in the United States of America are working hard to represent some laws and regulations regarding cryptocurrencies. For example, they are going to add a provision about making a momentary for so-called "crypto-currency brokers" to report to the IRS about tax data associated with such crypto transactions.
These currencies are disconnected from all kinds of economic, governmental, and current financial systems.
The United States of America is also thinking to do some legislations for the regulations regarding virtual and cryptocurrencies like Bitcoin so that issues related to reducing investments and regulatory problems associated with them due to their height volatile and speculative nature as all these currencies are virtually invisible and rapidly shapeshifting in terms of their value.
A Strong Decision by The Chinese Government Institutions:
The People's Bank of China describes these virtual & cryptocurrencies as non-fiat currencies. These virtual and cryptocurrencies are unstable. This detailed specification of fiat and non-fiat currencies by the central regulars like The People's Bank of China shows that regulars are finally now more interested In such virtual currencies.
This statement from the People's Bank of China also emphasizes that these restrictions regarding virtual and crypto-currencies are due to the increasing government concerns regarding the national security and safety of the assets that use these virtual currencies. These currencies can be deceived due to their blind, virtual nature and easily be used for Illegal fundraising, online frauds, or a central part of the fraudulent pyramid schemes to rob the general public.
The Chinese government is also worried that these virtual valets can be easily used for illegal and criminal activities. The Central bank of China that virtual and crypto-currencies like Ether, Tether, and Bitcoin have already shaken and broken up the Chinese economy and financial systems.
Energy Consumption & Carbon And Greenhouse Gases GHG Emissions:
The specified notice delivered by the National Development and Reform Commission of China gives detailed issues surrounding virtual currency mining activities and the measures the government will take for the prevention of virtual cryptocurrencies transactions and mining activities.
The production of virtual currencies like Bitcoins is done in the huge and dedicated server farms which are termed as the virtual "cryptocurrency mining machines".
These mining machines use a large chunk of electricity consumption for regular bitcoin or cryptocurrency processes. The power stations have to work more for the electrical power generation that is usually done by non-renewable resources like coal, gas, and oil-fired power stations. Therefore, virtual currency farming "mining" server farms are directly responsible for higher rates of greenhouse gases or GHG emissions in the atmosphere. Higher carbon and greenhouse gases emissions cause global warming and damage the ozone layer as well.
Therefore the government is looking forward to completing the elimination of this category of "virtual currency mining activities" which is usually wrongly associated with the other more essential server and cloud computing breakthroughs like blockchain, big data, cloud computing, matrix computing, and other big tech industries associated with these server farms.
The Establishment of Centers for Prevention of New Facilities and Rehabilitation of Old Minters:
The government has also forbidden all the virtual mining industries from any kind of new installation or upgrading activities of their data centers. They are also going to disconnect the electricity of these virtual currency mining server farms from the main electric power station gridlines. All kinds of dedicated electric supply are prohibited.
The Chinese government will build up special investigative cells which will analyze and investigate the areas of the computing industry where such illegal transactions and mining of virtual cryptocurrency are being done in the name of the development of digital economy and industrial structure adjustment.
On the other hand, these government centers will encourage virtual currency mining, trading, and transactional companies to move towards a more developed high-tech industry and computing services with low resource consumption and high added value.
The government of China also advised enforcing penalties that are following laws and regulations associated with similar crimes.
China Think Cryptocurrency As an (Outdated Industry) And A Currency with Almost Minimal Contribution in Economy Growth:
It is also well known and well documented that virtual and cryptocurrency which are non-fiat in nature have nil to very low contribution to the growth of any country's economy.
These currencies are disconnected from all kinds of economic, governmental, and current financial systems. Like any discredited and discarded, useless industry, the China government declares that cryptocurrency mining is an outdated industry and China will never allow the working of virtual or cryptocurrency mining machines in the name of data centers.






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