Crypto enthusiasts in China are just going to have an even harder time.
The nationwide crackdown on cryptocurrencies there is just further intensifying, and as a result, caused the value of major coins to drop, reports CNN Business.
According to the Chinese government, the crackdown's goal is to stop something "extremely harmful" to the country's desire to reduce its carbon emissions.
Bitcoin is among the hardest-hit due to the crypto crackdown, as it has been the main target of the National Development and Reform Commission (NDRC).
NDRC spokesperson Meng Wei called out bitcoin mining in a recently held press conference in Beijing, mainly due to its sky-high energy requirements that inevitably leads to increased carbon emissions.
Furthermore, Meng blasted crypto production as a whole, considering it "blind and disorderly" and saying it poses massive risks.
As a result, the price of bitcoin dipped 7% to just over $60,000, which is its lowest valuation in over a week. Ether (Ethereum) slid just a bit more at 8% to a low of roughly $4,300.
China is considered one of the foremost cryptocurrency mining hubs in the world. It was formerly the largest crypto market, only being overtaken by the United States in early October, according to The Washington Post.
'Punitive' Power Prices
In an attempt to further intensify their crypto crackdown, the Chinese government is targeting the lifeblood of the industry: power. It is well known that crypto mining consumes so much electricity due to its massive hardware requirements.
As such, the NDRC is now considering implementing sky-high electricity for crypto mines, reports CoinDesk.
This will severely hurt miners' bottom lines since they're always trying to balance their profits with their operating expenses. The more expensive electricity is, the more meager the profits get.
Government Officials Are Not Exempt
In yet another step to improve their cryptocurrency crackdown, the Chinese Communist Party has also expelled an official for supporting mining companies.
According to the South China Morning Post, the said official, Xiao Yi, has been reportedly found supporting illegal crypto mining companies under the table. Xiao also allegedly accepted bribes multiple times, in violation of the country's official industrial policies.
Moving House
With all the massive restrictions, Chinese crypto miners have no choice but to abandon ship if they want to keep their operations going.
To be specific, they're mostly moving west, with some of them settling in the United States--Texas. According to the BBC, some miners claim that they're never going back.
The miners are choosing locations on the West Coast, such as Texas, due to more relaxed regulations and cheaper electricity. With that, the Lone Star State is already a far better locale than anywhere in China.
This could turn Texas and basically the entire US into the world's biggest cryptocurrency market. But it's not just America they're looking to flee to. Some of them are setting up shop in Russia or Kazakhstan as well.
This article is owned by Tech Times
Written by RJ Pierce
