China's move against Bitcoin is proving to be the best thing ever for the cryptocurrency market

China's move against Bitcoin is turning out to be the best thing ever for the cryptocurrency market - 976161The price of Bitcoin took another slump this week, following the latest developments in China on the cryptocurrency front. The Chinese government had warned of its intention to crack down on mining in the country and it has since been reported that over 90% of the PRC's mining capacity has been closed, as many mining farms have been closed in Sichuan Province.

Bitcoin had risen to one last month quotation high of over $ 64.000, but cryptocurrency market volatility was laid bare after Tesla CEO Elon Musk expressed concern about Bitcoin's carbon consumption and suspended BTC payments regarding your company's vehicles.

Musk recently revealed that Tesla will return to accepting Bitcoin payments once it is confirmed that at least 50 percent of the world's mining is backed by renewable energy.

Big trouble in Chinatown

China's timing seemed almost suspicious as they launched their attack on the digital currency shortly after Musk's tweets. The asset climbed the rankings last week, hitting $ 40.000 but, as of Monday, dipped below $ 32.000 after news of China's new efforts to crack down.

In addition to the bans in Sichuan, the PRC central bank is believed to have instructed local banks to stop all cryptocurrency transactions.

Although the news has had a negative effect on the price of Bitcoin, as well as on most other digital currencies, proponents of cryptocurrencies believe that China's attempts to distance itself will be positive for Bitcoin in the long run.

Because the crackdown could be a good thing

The Asian country has long been the largest mining site in the world, and is responsible for more than half of global mining. Of course, this means that China has more power over BTC than most other nations. However, if the government succeeds in banning mining 100%, a number of positives will emerge.

The carbon footprint of the mining sector will be reduced significantly, as miners in other locations are turning to renewable energy: Musk also met with miners in the United States with the aim of forming the Bitcoin mining council which will see a greener mining. The hash rate will also be decentralized once the Chinese grip is loosened.

Fear, uncertainty and doubt (FUD) in relation to mining in China should also cease to be a problem as the nation relinquishes control of a resource considered the most important in the current era.

“We should be so lucky…” MicroStrategy's Michael Saylor said of the ban last month. The company now has 105.085 Bitcoin in its holdings after buying $ 489 million worth of BTC during the most recent drop.