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News- Mining Lesser-known tokens and proof-of-stake-based systems
- Focus now on the storage based tokens
- Storage based tokens is a safer option because it is a less energy-intensive process
The Chinese crackdown on Cryptocurrency started with banning crypto trade activities from banks and culminated with the ban on all mining activities. The crackdown forced many Chinese miners to stop their operations and relocate. However, a small group of enterprising miners is shifting towards more efficient mining activities that keep operating. It includes mining Lesser-known tokens and proof-of-stake-based systems. They plan to continue their work away from government oversight.
Chinese Miners Pivoting to Other Crypto Activities
The crackdown by China on Bitcoin mining and other cryptocurrency mining has affected the lives of thousands of Chinese miners who had to stop operations after the government adopted a new anti cryptocurrency policy.
Earlier, 80% of Bitcoin was mined in China, and the cheap power and labor served as an incentive for the establishment of huge mining rigs. These mining rigs were established in Northern China, where there are abundant coal reserves. However, ecological concerns have been raised about the environmental impacts of Bitcoin Mining. It was also one of the said reasons for the massive crackdown on mining activities in China.
Many miners have relocated to locations that are more amenable to crypto-mining. These include former Soviet Union Republics, Eastern Europe, and Russia. However, a few miners are looking for other alternatives to keep working in China.
The storage-based tokens have become the most significant focus of this group. Bloomberg has confirmed that the Web 3.0 Blockchain Application Cum Computing Power Overseas and Distributed Storage Conference will be held in Chengdu.
The Web 3.0 Blockchain Application cum Computing Power Overseas and Distributed Storage Conference will be held after the recent crackdown by China. Miners are betting on Filecoin, which is a safer option because it is a less energy-intensive process. The interest in Filecoin is increasing because it is an area of business that has not attracted any regulator’s attention.
Another storage-based token in the sight of miners is Swarm, a currency that shares the same proposal as Filecoin and Chia.
Miners are Still cautious to Act
However, the Chinese authorities are inevitably going to target this group of new cryptocurrencies shortly. Most miners are adopting a wait and watch mode and hope that the Communist Government will slacken the drive against Bitcoin Mining. However, the signs are not favorable. Another Chinese province, Anhui, announced a crackdown on Bitcoin Mining operations due to power shortages.
Tan Weizhe, the managing partner of Zhizhen Capital, runs mining power migration services and runs and operates several crypto complexes in the U.S., Australia, and Canada. According to Tan, most mining hubs will relocate, and the process will be over by next October.
As the Chinese crackdown continues, it is also fast-tracking its own CBDC, the Digital Yuan. In addition, it is running several pilot projects and even starting distributing the Digital Currencies in some sectors on a limited scale to better gauge their utility.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
