Forbes

China's shutdown of Bitcoin miners isn’t just about electricity

China produces the most Bitcoin in the world using Bitcoin mining, which involves an energy-intensive process of solving complex math problems. Bitcoin mining is estimated to use up to 4 gigawatts of electricity, equivalent to three nuclear reactors' production levels. In this context, China is planning to limit electricity to Bitcoin miners, and government bodies have expressed concern about energy usage.

However, this move isn’t just about the electricity. It’s mainly about clamping down on perceived risks of the cryptocurrency, which regulators have associated with malicious acts like fraud and money laundering.

While cryptocurrencies were meant to be stateless, there is no avoiding the hand of the state in quashing criminal activity. China and other countries should set up regulations for Bitcoin to reduce crime. Consulted on this matter, GSEM Prof. Olivier Scaillet agrees, stating, "if you regulate the use of bitcoin in terms of acceptance as a means of payment, it is a way to limit its criminal use".

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