During this period, the currency circle is experiencing the most severe test since 2017. It has only been three days since the three major associations of the financial industry emphasized the prevention of the risk of speculation in virtual currency transactions. On May 21, the Finance Committee of the State Council clearly proposed to crack down on Bitcoin mining and trading. The price of Bitcoin then fell, falling below the $35,000 mark. Thanks to the Roast Boy Creators Alliance!
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Prevent the influx of hot money through Bitcoin
We are currently in a period of difficult economic recovery after the epidemic. During the epidemic, the Federal Reserve has unrestricted monetary easing, and a large number of dollars are frantically pouring into developing countries, pushing up asset prices and waiting for opportunities to harvest the world. my country is also facing a severe test. In the current financial environment, preventing financial risks is above all else.
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The currency circle is full of chaos
In the past period of time, the currency circle can be said to be full of chaos. Under the influence of Musks crazy carrying of Dogecoin, various animal air coins were born. The emergence of these animal coins has been enthusiastically sought after by the new leeks in the circle, and they have increased by hundreds of times and thousands of times in a short period of time, attracting retail funds to follow suit. These coins are completely worthless air coins, which are typical routines for cutting leeks with funds , In the end, it was all chicken feathers.
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Superimposed carbon neutrality target during the power supply gap period
We all know that virtual currency mining requires a lot of electricity, and the energy consumed by Bitcoin mining in one year is equivalent to the electricity consumption of the whole of the Netherlands. More than 60% of the computing power of the entire network is distributed in China, and our country consumes a lot of energy due to Bitcoin mining every year. Next, my country is about to usher in the peak season of electricity consumption in summer. According to the current forecast, many provinces will have a shortage of electricity this year and face a shortage of electricity. Therefore, it is necessary to use policy regulation means to reduce the power consumption of the Bitcoin mining industry and meet the needs of peoples livelihood.
In addition, my country has formulated a long-term goal of carbon neutrality, and strives to reach the peak of carbon dioxide emissions before 2030, and strives to achieve carbon neutrality before 2060. Under the condition that coal power is limited, the power gap will be greatly exacerbated, and the power consumption for digital currency mining will be severely squeezed.
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1. De-Chinaization of Bitcoin computing power
At present, my country has mastered more than 60% of the worlds computing power. With the further implementation of the policy, most of the computing power may begin to migrate overseas to complete the de-Sinicization of Bitcoin computing power. As early as the 94 Incident in 2017, my country shut down domestic digital currency exchanges, realized the de-Sinicization of Bitcoin transactions, and gradually lost the pricing power of Bitcoin. Now, with the further de-Sinicization of computing power, it can be foreseen that we may have completely given up on Bitcoin.
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2. Bitcoin will not die
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3. Exchanges reshuffle
The 94 policy in 2017 caused a reshuffle of domestic digital currency exchanges, and the largest digital currency exchange in China, Bitcoin China (BTCC), was liquidated; Coin and OKEX chose to go to sea for the first time, realizing the curve to save the country. At that time, Binance, Huobi and OKEX formed a three-point world situation.
This time, if the top management is serious, then the exchange will definitely usher in another reshuffle. Although Huobi and OKEX went overseas that year, the actual main body is still in China, which can be regarded as an untimely bomb. As domestic policies continue to tighten, Binance will be the only option for domestic users, and Huobi and OKEX users will accelerate their flow to Binance, forming a dominance of Binance.
In short, the digital currency industry is still in a stage of rapid development. Although there will be a lot of chaos in the industry, with the continuous improvement of supervision, the industry will gradually enter the right track. The formulation of policies also varies from time to time. I believe that after the current crisis is over, the policies will also usher in corresponding changes. After all, we still have to adapt to the development of the times and keep pace with the times!
