bitcoin, Babel Finance, taken action, Xinjiang, Weibo banned several influential accounts

Bitcoin trading volumes are continuing to plummet in response to pressures from a cryptocurrency crackdown in China, the location of most of the world’s bitcoin mining capacity, amid a bearish market for the most widely used cryptocurrency.

Daily trading averages fell to US$34.8 billion in the first eight days of June, a sharp decline from the record US$67 billion last month and the lowest for any month since last December according to CoinDesk Research.

The average bitcoin transaction fee – the amount paid to miners who process transactions – also fell to US$4.38 over the weekend, a 93 per cent decline from its peak of US$62.77 in April, according to Cointelegraph.

Bitcoin “mines” are large computer server arrays used for verifying transactions on the bitcoin blockchain, which is achieved by completing complex calculations. To incentivise miners to contribute to decentralised network, they are rewarded with bitcoins for verifying transactions and can charge a transaction fee. The fee is usually affected by supply and demand, along with the size of the transaction and the number of transactions a coin has already gone through.

“Trading volume is usually smaller when it’s a bear market, primarily due to regulatory changes,” said Simons Chen, executive director of investment and trading at Hong Kong-based cryptocurrency finance firm Babel Finance.

With the crackdown in China showing no signs of easing up soon, bitcoin prices have plunged by more than 40 per cent from their all-time high of more than US$62,000 in April.

The latest crackdown kicked off in May, when the financial body of the State Council, China’s cabinet, issued an alert on the matter, citing financial risks. Liu He, the top economic adviser to Chinese President Xi Jinping, said that the government will “crack down on bitcoin mining and trading behaviour, and resolutely prevent the transfer of individual risks to society”.

Chen said that the signal from the meeting “has scared away some traders”.

Following the meeting, several bitcoin mining hubs have taken action. Inner Mongolia, Xinjiang and Qinghai have issued notices to shut down part or all of the mines in their regions. Sichuan province, which relies on cleaner hydropower, held a meeting on bitcoin mining earlier this month, but it did not come to any conclusions about possible policy changes.

China accounts for 65 per cent of the global bitcoin hash rate, a measure of the network’s computational power, according to the Cambridge Bitcoin Electricity Consumption Index. Xinjiang alone accounts for nearly 36 per cent of it, with Sichuan and Inner Mongolia coming in second and third, respectively. Qinghai ranks ninth, accounting for 0.26 per cent of the hash rate.

Search engine Baidu and social network Weibo have been censoring search results for major cryptocurrency exchanges since Wednesday. Last week, Weibo banned several influential accounts related to cryptocurrency, saying the accounts had violated Weibo guidelines and “relevant laws and regulations”.


Japan travel news, japan travel guides, japan holiday destinations and japan reviews

LATEST NEWS

Tencent-backed Zhuanzhuan nets $100m from Xiaomi, Shunwei, others

Baidu to deploy 1,000 budget robotaxis on Chinese roads as it seeks ways to monetise autonomous driving technology

US commission votes to advance ban on Huawei, ZTE telecom gear

Chinese apps like TikTok and WeChat could still face bans or subpoenas over data practices in US

Hong Kong market rises as tech stocks rally, after White House signals Biden-Xi talks

US FCC advances proposed Huawei and ZTE equipment ban on telecoms networks, which could revoke prior approvals

Chinese pork giant WH Group fires chairman’s son from board over aggressive behaviour

Navigating data compliance is becoming a bigger challenge for businesses amid increased scrutiny

NASA chief congratulates China's successful Shenzhou-12 mission

Chinese retail investors reminded about embracing value investing by ‘Millionaire Yang,’ ex-factory worker lionised by Beijing

China’s Didi ropes in five more banks to work on mega US IPO

UFC fighters’ supercars: from Conor McGregor to Ronda Rousey, how MMA stars ride in style with luxury Mustangs, BMWs, Lamborghinis and Rolls-Royces

Beijing can stay calm amid new EU-US pact as interests of Washington, Brussels are not aligned

Take a peek inside Jeff Bezos’ first-class space flight – Blue Origin’s New Shepard rocket and spaceship photos revealed (and it’s fancy)

TikTok rival Kuaishou takes market cap crown among new IPOs

Hong Kong’s overly cautious coronavirus policymakers must seek to drown out the ‘noise’

NEWS RELATED

Index publisher MSCI looking at launch of crypto indexes

Global securities index publisher MSCI is looking at launching indexes for cryptocurrency assets, according to Chief Executive Henry Fernandez, in what would be another step towards mainstream acceptance for digital currencies and the companies trading in them. Fernandez, speaking at a Clubhouse event organized by venture capital firm Andreessen Horowitz…

Read more: Index publisher MSCI looking at launch of crypto indexes

DeFi startup Instadapp raises $10 million in funding

Mumbai: Instadapp, a Bengaluru-based decentralised finance (DeFi) startup, has raised $10 million in funding from venture capital firm Standard Crypto, and strategic partners, including Yearn founder Andre Cronje, DeFi Alliance, Longhash Ventures, among others. The company had in 2019 raised a seed round from entrepreneur investors Naval Ravikant and Balaji…

Read more: DeFi startup Instadapp raises $10 million in funding

What El Salvador's bitcoin push means for the cryptocurrency

London: El Salvador has become the first country to adopt bitcoin as legal tender, with President Nayib Bukele touting its use for its potential to help Salvadorans living abroad to send remittances back home. Here’s what the move means for bitcoin as a mainstream currency—and emerging markets such as El…

Read more: What El Salvador's bitcoin push means for the cryptocurrency

El Salvador makes Bitcoin a legal tender. Here’s all you need to know

Bitcoin wallets can be stored offline or online at cryptocurrency exchanges, venues where bitcoin can be bought and sold for traditional currencies or other virtual coins.(Representative image) Central American nation El Salvador became the first country in the world that has legalized the use of Bitcoin and will use it…

Read more: El Salvador makes Bitcoin a legal tender. Here’s all you need to know

How China’s digital currency is leading the race to displace bitcoin and other cryptocurrencies

Ever since 2014, the Chinese government has led the global race to form a central bank digital currency (CBDC) with the creation of the digital yuan. Central banks across the world soon began to play catch-up and develop their own projects behind this digital technology. Seven years later, the Bank…

Read more: How China’s digital currency is leading the race to displace bitcoin and other cryptocurrencies

From diamond factory worker’s son to founder of $10 billion crypto venture: The story of Jaynti Kanani and Polygon

He was the son of a diamond factory worker who lived in a small house on the outskirts of Ahmedabad in Gujarat, often struggling to pay his school fees. His ambitions then were to land a decent, salaried job that would help pay off his father’s debt. However, destiny had better plans…

Read more: From diamond factory worker’s son to founder of $10 billion crypto venture: The story of Jaynti Kanani and Polygon

China plans to accelerate blockchain development and adoption in push to become a world leader in the technology by 2025

China’s government is doubling down on its embrace of distributed databases with the establishment of an “advanced blockchain industrial system”, as the country looks to incorporate the technology into its economic and development plans. The country plans to establish industrial standards, tax incentives and intellectual property protections to support the…

Read more: China plans to accelerate blockchain development and adoption in push to become a world leader in the technology by 2025

Explained | How US Investigators recovered the Bitcoin ransom paid by Colonial Pipeline

Bitcoin and Cryptocurrency is largely seen as untraceable but how did the FBI do it? Cryptocurrency is the wave of future. It may not be widely accepted right now but experts suggest that time will come. Unfortunately, thanks to the inherent security standards built into the system, Crypto is also…

Read more: Explained | How US Investigators recovered the Bitcoin ransom paid by Colonial Pipeline

Sichuan takes lenient stance on bitcoin mining amid national crackdown to deal with rainy season’s excess hydropower

Phillips courts bitcoin tycoons for Banksy painting at upcoming Hong Kong auction

El Salvador to adopt bitcoin as legal tender

Scams, memes and crazy money: Inside India’s buzzing crypto WhatsApp groups

Simply Save podcast | The many similarities between cryptocurrencies and equity investing

Bitcoin slumps 8% as it heads for bruising monthly drop

Explained | Blockchain: How a decentralised application can help a music artist and a crypto investor

HSBC CEO says Bitcoin not for us

OTHER NEWS