Inner Mongolia recently banned cryptocurrency mining to aid its efforts to reduce its energy consumption in 2021.
Inner Mongolia Bans Cryptocurrency Mining : Read more
Inner Mongolia Bans Cryptocurrency Mining : Read more
Good riddance. Now rinse and repeat worldwide.
Central Banks are bad because they sometimes poorly manage the money supply and the value fluctuates so much it ( 4%/year?) that it creates economic hardships.
But Crypto is good because it keeps wildly fluctuating in value (400%) for no underlying reason and is useless as currency.
Central Banks are bad because they are under the influence of large governments and sometimes pressured to take actions that may favor some interests over others.
Crypto Currencies are dominated by the originators some of them completely Anonymous and untraceable. The mysterious Satoshi Nakamoto owns 5% of all bitcoin and that is good. Just clues in the blockchain that the founders had transferred value could crash the whole scheme.
It is entertaining though!
I think in reality only a few miners will get richer, and those miners may not even be a Mongolian. They are mostly just capitalizing on their cheap power to set up mining stores there. So not sure how will Mongolia get richer though. By selling cheap power to miners?Inner Mongolia will be poorer, and will watch how the rest of the world gets richer.
This is like mining a limited ammount of gold. At the end only some countries will get the purchasing power, and Inner Mongolia will not be one of those.
Then they will blame capitalism.
Except cryptocurrencies are not actually limited. Any given currency might be, but as soon as one becomes unprofitable to mine, the miners will just move on to another. Launching a new cryptocurrency takes little effort, so they are practically limitless in supply. At least until the bubble bursts and those left holding onto them who didn't cash out early end up losing lots of money. Those who did, on the other hand, can be happy that they profited from what will likely amount to a scam at the expense of others. It's largely just a speculative market with no particularly useful product behind it, after all. Maybe a few will manage to stabilize and survive in the long term, albeit with heavy government oversight controlling them, removing their main selling point, but most are destined to fail as an actual currency system.This is like mining a limited ammount of gold. At the end only some countries will get the purchasing power, and Inner Mongolia will not be one of those.