China isn’t stopping banning more companies involved in the crypto market. When the country started telling firms to stop getting involved in crypto, it urged one major mining company to shut down. The first instance happened in 2017, which triggered a 6% increase in Bitcoin. Although China’s leaders are optimistic about the future of blockchain technologies in the past years, they still don’t completely support crypto for several reasons, two of which are high energy consumption and decentralization. This week, China urged multiple financial institutions to stop all transaction involving cryptocurrencies, even account openings.
However, China doesn’t share the same sentiments with other countries. There are places in the world that are completely supporting Bitcoin mining. In fact, one of the major bitcoin mining companies called BIT Mining in China is moving its equipment to Central Asia. Today, El Salvador is taking crypto mining to the next level. A tweet from Samson Mow, the CSO of Blockstream, says, “Volcano mining was inevitable” and shares some sneak peek photos of volcano mining.
El Salvador has become the world’s first nation to tender Bitcoin when it accepted Bitcoin as a payment in June 2021. Soon after that, President Nayib Bukele directed a State-owned power station to supply cheap, renewable energy to Bitcoin mining firms obtained from volcanoes in the country.
The decision by El Salvador to tender Bitcoin could be a win for the crypto market and the country itself.
“(W)hat it does for bitcoin is further legitimizes its status as a potential reserve asset for sovereign and super sovereign entities,” said Greg King, CEO of Osprey Funds, a crypto-asset management, to CBS News.