Chinese authorities have exceptionally been hard on crypto miners. The reason behind that was cited to be environmental concerns. However, according to the methods in various other fields employed by China, it doesn’t seem that their concern for the environment was genuine. Nevertheless, they banned cryptocurrency mining and their stance on crypto, in general, doesn’t seem to be that supportive. After all, if democracies such as America have shown resistance to DeFi, China will obviously not allow such a development. The real reason behind the banning of crypto mining in China was the shortage of electricity that it faced due to mining. Crypto mining requires powerful GPUs that consume a lot of energy. Even Elon Musk had raised concerns about this when he disassociated Tesla from crypto.
The situation now
Considering the huge consumption of energy, crypto miners sought alternatives such as renewable energy as well as IOT. At present, due to the inclusion of renewable energy methods, even Elon Musk has started to associate Tesla with crypto mining. The world is definitely moving towards a DeFi environment where decentralization is at the core. Yet, it will only be made possible if the superpowers around the world actually believe in handing power to the individuals. The sentencing of crypto miners in China is a red flag for the crypto industry. However, it’s a good sign that China is filtering out fraud rings that harm the reputation of crypto.
Even after the ban, there are many rebellious crypto miners who have still not given up hope.