China, a Major Bitcoin Source, Considers Moving Against It
China may eliminate its subsidized cryptomining industry in the near future. Cryptomining involves the use of the processing power of machines in order to solve complex math problems, by which cryptocurrencies are generated. The Chinese regime initially believed that investing in cryptomining could be beneficial to its economy, and therefore subsidized the practice.
However, the country began pursuing policies that undermine the profitability of crytpomining in 2017 for various reasons, including the fact that the decentralized currencies generated by mining undermine China’s ability to monitor cash flows in and out of the country, and because cryptocurrencies are often used by criminals to purchase illegal goods and services.
China still accounts for 40% to 70% of global cryptomining power, but if a new proposal to eliminate cryptomining subsidies is adopted, this will certainly change. Many Chinese cryptominers have already left the country as a result of increasing pressure from the government.