Cryptocurrencies “at risk” .. Reports: China is responsible (2024)

Anand Singhal has made savings of $50,000 since he was 13 and doing freelance coding from his bedroom in New Delhi. Just seven minutes ago on May 19th.

Binance, the world’s largest cryptocurrency exchange, was frozen for more than an hour in May, as the price of Bitcoin and other cryptocurrencies plummeted. The accounts of Singhal and others who had placed high bets on the rise have been closed, according to the Wall Street Journal .

As the losses worsened, the exchange took over the margin collateral and liquidated its holdings.

Anand Singhal told the newspaper that he lost $50,000 in addition to the $24,000 he had made in the previous trading.

Binance has no headquarter

Traders of this platform around the world are trying to get their money back. But unlike a more traditional investment platform, Binance is largely unregulated and has no headquarters, which makes it difficult to return that money.

Singhal is one of about 700 traders on this platform, working with a lawyer in France to make up for their losses. And in Italy, another group is petitioning Binance about the same issue.

Why is Bitcoin price going down?

Analysts warn that cryptocurrency prices are in danger, according to the Forbes website, as the prices of cryptocurrencies, including Bitcoin, have faced difficulties in recent weeks with the exacerbation of the crackdown led by Beijing, especially since about 80% of these currencies are mined. It was done in China.

The price of Bitcoin crashed in May, lost 50 percent of its value, and has been under pressure ever since, while the second-largest cryptocurrency, Ethereum, has also more than halved.

The Chinese campaign led to a decline in the price of Bitcoin, for example, to about 32,000 dollars, after it had recorded a record high of about 65,000 dollars in April.

According to Forbes, there have been reports on social media that China has started blocking access to major cryptocurrency exchanges .

Binance has been struggling with a global regulatory crackdown in recent weeks, as the United States and countries across Europe have ramped up their scrutiny of the exchange.

China’s crackdown on bitcoin and crypto mining last month forced those using high-powered computers to secure the bitcoin network and validate transactions outside the country.

The expulsion of bitcoin and cryptocurrency miners from China has sent the bitcoin hash rate, a measure of how much computing power is directed into the bitcoin network, to a 13-month low over the past two weeks.

Why Ethereum is dying?

The Ethereum network has also been hit by a crypto mining ban in China, where the network’s hash rate has fallen by about 20 percent since May as mining capacity has declined.

Beijing has toughened its approach to cryptocurrency mining to eliminate financial risks arising from speculation.

The home of cryptocurrency mining sites

Sichuan is home to a large number of cryptocurrency mining sites that require a huge amount of energy and are abundant and cheap hydroelectric power sources are available in the province.

After dropping below $30,000 in recent weeks, the price of Bitcoin has stabilized just above the same level, but its failure to reclaim the cryptocurrency lost gains since its crash in May has left many crypto market watchers worried.

The risk of Bitcoin trade

Forbes quoted Alex Kopetsekevich, chief financial analyst at FXPro, warning that if the bitcoin price drops below $30,000, “it is likely that this will lead to a new wave of liquidation,” noting that any small storm can turn into a massive sale .

And the Washington Post revealed, in a report last Thursday, that bitcoin miners have opened new facilities in Texas, a state that has been hailed as the capital of cryptocurrency.

According to the newspaper, Winston is significantly expanding its facilities outside of Rockdale, with the aim of doubling its capacity, as the cryptocurrency mine is expected to require 750 megawatts of power, enough to power more than 150,000 Texas homes during peak demand.

Is Bitcoin environment friendly?

According to the UN, the network Bitcoin consumes more energy than many countries, such as Kazakhstan and the Netherlands.

Bitcoin transaction consumes 980 kilowatt-hours

The amount of energy required for each transaction is “enormous ” compared to the amount of energy consumed by traditional credit cards.

For example, a single MasterCard transaction consumes 0.0006 kilowatt-hours , while a Bitcoin transaction consumes 980 kilowatt-hours , enough to power an average Canadian home for more than three weeks, according to a report published by the United Nations. Sunday.

How many crypto miners are there in the world?

Cryptocurrency miners compete with each other around the world to create the computer code that results in the production of one bitcoin, as the algorithm that governs the production of bitcoin allows only 6.25 bitcoins to be produced every 10 minutes, out of the 70,000 crypto miners likely operating around the world.

But Singhal, 24, who moved to Tokyo last year to work for a software company, says: “I’ll never trade crypto again. I’m shocked.”