We recently heard another FUD regarding China banning crypto. It doesn’t seem to get old now, but the market still reacts to it, so that’s funny. But it does have some negative impacts. For example, this time around, China’s crackdown on crypto resulted in another Ethereum mining pool, BeePol, shutting down in the country. It was the fourth-largest ETH mining pool in the country, showing that things are not looking good for miners in China.
The Ethereum mining pool shuts down
The mining pool recently shut down after the regulatory policies made it almost impossible to operate in the country. All mining servers will be discontinued by 15th October, and no users will be registered anymore. This shows that China is not going to stop until it completely removes crypto mining companies from the country. We have seen them operate them in waves, and every time this happens, the market dumps and this time is no different.
It’s not just BeePool, the second-largest Ethereum mining pool Sparkpool also shut down its operation and will close down everything by the end of September. This is going to impact Ethereum hashrate significantly as they account for nearly 25% of the entire mining power of the cryptocurrency. The transaction rates are expected to skyrocket due to this, and we can expect a price drop again.
China’s hate and love relationship with crypto
Why do I say this? It’s because, in every bulk run, China bans crypto, and in some way, companies and mining operations start back up again. We should also note that while China is not in favour of private and decentralized crypto, it is working on digital-yuan. This will be China’s take on CBDCs and are expected to be an alternative to any other cryptocurrencies in the country.
This is why they are going to lengths to stop crypto activities in the country. A few days back, the authorities seized 10,000 Ethereum miners from a warehouse. And all this is affecting the hashrate of ETH, which is bringing down its price.
As the Ethereum mining pool shuts down, do you think the crypto price will drop further? And will China stop banning crypto a million times? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.