The Chinese government is contemplating a ban on Bitcoin mining in the country. This move is to reduce government growing pressure on cryptocurrency sector.
While many think this would have a negative effect on the entire crypto community since Bitcoin pulls the wave that rolls the crypto world, others still believe it will give other cryptos like Ripple XRP a chance to soar higher.
China’s Ban Attempt on Bitcoin Mining
China’s state planning body known as China’s National Development Reform Commission (NDRC} announced on Monday that it was seeking public opinion on the revised list of industries it wants to encourage, restrict or eliminate.
This list is known as Guiding Catalogue for the Adjustment of Industrial Structure, was formally issued on December 21, 2005, as a supplementary document to the interim regulation.
According to a report by the Reuters, the draft of the Guiding Catalogue has Cryptocurrency mining as one of the four hundred and fifty activities the NDRC would like to phase out.
These are activities that do not adhere to relevant laws and regulations, have been seen as unsafe, wasteful and pollutes the environment.
The date or plan on how and when this elimination of bitcoin mining would take place was not indicated, meaning it could happen anytime. According to the document, the public has till the 7th of May to submit their comments on the proposed changes to the list.
A Chinese bitcoin trader who prefers to remain unanimous says this decision was taken because Bitcoin mining wastes a lot of electricity.
Other crypto traders said they were not surprised by the government’s move since the country’s industry policy towards the cryptocurrency has been a negative one.
How Ripple XRP Will Become Number 1 In The Space
Bitcoin, which is synonymous with cryptocurrency, representing half of the crypto market shoot up to almost 20% in its best day last week since its peak in 2017. Breaking above $5000 for the first time since November, Bitcoin went down again this week, as many investors began to express fear about what would be the fate of the number one crypto.
The bright side of the whole issues surrounding Bitcoin is that China will lose dominance over the crypto industry, if bitcoin falls, other cryptos would move up to fill the gap created.
Among all the other cryptos, Ripple XRP seems to be the most qualified to take the number one position.
One interesting point that would make XRP suitable in this realm is the fact that the digital asset is not minable and has been rated as the most eco-friendly digital asset among thousands of existing cryptocurrencies. The university research, which made this claim, was done at Standford & Stockholm University by two outstanding researchers by the name John Leopold and Niclas Englesson.