Chinese President Xi Jinping

After the influential Elon Musk announced that his company Tesla would no longer receive payments in Bitcoin due to environmental damage, much worse news arrived for cryptocurrencies and their owners. China’s largest financial institutions have joined forces in a joint announcement and decision against cryptocurrencies, and the decision was also supported by the Central Bank of China, writes Forbes. Cryptocurrency trading is subject to speculation and manipulation, and the cryptocurrencies themselves cover in real value, is the conclusion of the joint announcement. What is a much more serious blow to these digital currencies is the decision to ban financial institutions from offering cryptocurrencies as a legitimate form of trading, paying, or buying. Otherwise, they will be prosecuted, the announcement reads. Private users, at least for now, are allowed to own and trade cryptocurrencies. TEXT CONTINUES AFTER THE AD Sponsored content How did she manage to lose 19 kg in 4 weeks? Midas – Native Internet Advertising Just a day after this announcement, China’s northern region called Inner Mongolia called on citizens to report “factories” where Bitcoin is “mined”. Namely, what enables Bitcoin transactions is solving computer puzzles (so-called “mining”) in order to erase the trace of money and keep the currency decentralized. Such calculations are becoming more and more complicated and today they are mostly done by “factories” of several dozen or hundreds of powerful computers. This process consumes a lot of electricity, and due to the lower price of electricity and the availability of technology, 70% of the “mining” of the most famous cryptocurrency takes place in China. After the announcement of Elon Musk and the Chinese decision, the value of Bitcoin and other major cryptocurrencies (Dogecoin, Ether) dropped considerably. At one point yesterday, Bitcoin was 40% less valuable than 14.4. when it was nearly $ 64,000.