China being one of the popular cryptocurrency markets might ban Bitcoin (BTC) trading, mining and crypto services soon. An exceptional exemption is required in the People's Republic if anyone has things to do with Bitcoin. A call for a reduction on the impact caused on climate was the reason given by the Chinese government.
This reason is valid, although it is apparent that China is venting its anger on carbon-spewing, electricity-guzzling cryptocurrencies to render any assistance to the Earth's climate. This is regarded as their first shot in an imminent worldwide showdown against Bitcoin and other cryptocurrency projects that operate on the proof-of-work (POW), the complex cryptographic security operation encompassed under "mining" The chances of crypto winning this battle is very low.
This realization is very difficult for many crypto enthusiasts holding Bitcoin. Luckily, there is a helpful parallel that even has the same name: coal mining. The successful reign of coal might be coming to an end as there are now alternatives that are economical, cleaner and efficient, and technologically advanced.
Coal is not going to collapse without initiating a fight backed by powerful politicians and rich corporate lobbies who are always ready for a campaign donation. Moreover, if your financial adviser shows interest in coal and decides to invest in it, you might start considering getting a new adviser. For some close reasons, this might be the time to start accepting that coal to crypto mining might be a thing of the past soon.
China Bitcoin's ban short term effect
A combination of reluctance and inertia has cushioned the effect of China's war on Bitcoin temporarily. After the previous shock, the United States took advantage of China's ban by becoming the world's new mining hub. According to recent statistics, Malaysia and Kazakhstan, and Malaysia in Asia have their mining operations being stepped up, as well as Ireland and Germany in Europe and the Middle East, Iran. Some strange geopolitical bedfellows are being created to advance the mining of cryptocurrency.
Such a diverse and colorful "Bitcoin mining coalition" might bring hope back to some investors. But truthfully, it will only last a short while. The United States can't hold the position of being the mining champion for long, this is because they cannot match the low energy prices of China. Germany and Ireland are experiencing the same situation while people in Ireland are protesting due to a severe shortage of water.
It is therefore undesirable politically and untenable socially for a theocracy to boast of having a stake in the world's least sustainable cryptocurrency. Malaysia's exposure to rising sea levels and harsh weather conditions would limit the sustainability of mining cryptocurrency in the long term. Summing all these up, the future of mined cryptocurrency is significantly limited by these developments.
Commitments to climate action push mining to the margins
Unfortunately for Bitcoin's miner, most of the world's state and industrial nations that are virtually powerful have delved into the Paris Climate Accord. Thereby affirming the commitment to protecting the planet from further overheating and limiting carbon emissions. Bitcoin mining is quite contrary to this promise. Aside from the Paris agreement, the action plan for climate change is being pursued by the European Union. The energy-intensive projects including Bitcoin are being pushed to the fringe by these multinational agreements.
As these agreements are in favor of carbon neutrality, a country that does not have a long-term goal for its climate is considered to be involved in the task of crypto mining. Moreover, many of these countries making efforts to mine cryptocurrency are classified as authoritarian states. They face international pressure coupled with internal discontent and strife. Mining is unfavorable for the weather and dangerous for business
Once a cryptocurrency is linked to the geographical and political fringe, it can be hard for it to claim it is truly democratic and centralized. Even if we overlook the impact caused on climate, how is it possible to take the cryptocurrency mined in tyranny as a tool or token for economic liberation? Judging from the angle of finance, appearances, and climate, it is only a matter of time before the sun sets on Bitcoin and other cryptocurrencies.