The People’s Bank of China (PBOC) today had a closed-door meeting on the use of electricity for bitcoin mining. The legitimacy of the news has been confirmed by Tencent Finance. 

The PBOC Investigates the Power Usage of Bitcoin Mining

Tencent Finance said that China’s central bank recently had a closed-door meeting to discuss how to regulate bitcoin mining. Two sources reveal that the authority doesn’t plan to shut down mining farms, but to regulate the power usage of bitcoin miners. 

A Sichuan-based bitcoin mining farm owner said that the local government is investigating a list of bitcoin mining data centers in the area.

Governments at all levels were asked to clarify the location and numbers of bitcoin miners and report relative information to the monetary authority.

He added that the move is currently targeting small-scale mining farms. “Large mining farms are still operating as usual — But future development of bitcoin mining might be limited.”

The PBOC Hosts a Closed-Door Meeting Over Electricity Usage of Bitcoin Miners

Chinese Press Are Talking About a Bitcoin ‘Bubble’

China Economic Weekly, the official newspaper subsidiary for the People’s Dailyreported on the first working day of 2018 the government acted “with an iron fist” to ban initial coin offerings back in September for financial stability. The next day, China’s People’s Daily published a story saying that the discussion over a Bitcoin bubble is necessary.

The so-called advantages such as scarcity, fidelity, strong liquidity, transparency and decentralization are only disguises for speculation. How come bitcoin price rallied hard in 2017 while it hasn’t made any improvement over the years?

The official press of the Chinese government believes that investors try to make bitcoin look mysterious by highlighting its anonymous creator and bragging about its free liquidity. “the current tumble is a warning signal,” said the newspaper. “Investors must remain cautious of these pump-and-dump schemes.”

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