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Chinese draft proposal seeks to eliminate crypto-mining activity, terms it ‘undesirable and wasteful’

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Chinese draft proposal seeks to eliminate crypto-mining activity, terms it 'undesirable and wasteful'
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China is moving towards discouraging cryptocurrency mining in the region. In an all-new draft proposal, the latest industry under the scanner is cryptocurrency mining. According to the proposal by the National Development and Reform Commission [NDRC], crypto-mining is flagged as an “undesirable industry”. The proposal urged the State to get rid of the “wasteful” sector.

According to the proposal’s directive, the sector poses legal and safety complications, while also polluting the environment with extensive power consumption.

Due to its low-cost electricity, China has been the hotspot for 70 percent of all crypto mining-related activities. It is also home to the largest chipmaker, Bitmain.

Following the development, Mati Greenspan, a Senior Market Analyst at eToro, commented,

“If this ban does end up happening its more likely to push BTC prices up than down. The loss of cheap Chinese electricity would raise the mining cost, which is net positive on price. It would also serve to kill the FUD that Bitcoin mining is centralized.”

Bitcoin mining has been strongly criticized by individuals outside the community, while strong proponents of the digital coin insisted that the mining process was not necessarily polluting. The latest reports from Digiconomist suggest that Bitcoin’s network uses an enormous amount of renewable energy from the Chinese province of Sichuan, to which Bitcoin advocates argue that the energy reserves anyway dry up, if not utilized.

This development will be a fresh blow to the cryptospace at a time when Bitmain is struggling from the losses it posted in 2018.



Recently, it was reported that traders and investors in the region had started to acquire Bitcoin at a cost of 3%  premium via over-the-counter or OTC platforms. China had imposed a blanket ban on cryptocurrency trading and ICOs last year, however, possession of virtual assets was not prohibited. The Asian country has stringent laws for cryptocurrencies in place. However, it is open to the underlying blockchain technology, which has been leveraged by big players like Baidu and Alibaba, among others.

The proposal does not outline a deadline. However, the public will be allowed to comment on the draft up to May 7.





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XRP

Has XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?

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Hash XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?
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Opinion: Bitcoin, the first cryptocurrency, has had over ten years to grow. However, other altcoins did not have the liberty, due to which Bitcoin exerts its dominance over almost all altcoins in the ecosystem, be it Ethereum, XRP, or Cardano. The price of altcoins generally tends to rise if Bitcoin’s price surges rapidly. The same can be said about the downtrend as well, which is why altcoins are said to be coupled with Bitcoin.

However, the recent buzz on crypto-twitter is that XRP is on the verge of decoupling from Bitcoin. A Twitter user @XRPMOONSHINE tweeted:

“DO ME A FAVOR OPEN UP A BTC/USD CHART AND AN XRP/USD CHART. THEY HAVE DECOUPLED AND ARE MOVING DIFFERENTLY.”

In a very general sense, the comparison of the price change of XRP and BTC gives a crude understanding of whether the prices have actually decoupled or not. Hence, the daily chart attached below shows the price of BTC and XRP against the US Dollar and extends from August 2018 to April 2019. The price of XRP seems to be following a lag from the price of BTC and do not necessarily mean that it has decoupled.

However, there are timeframes where the price of XRP has moved completely unrelated to that of Bitcoin. For example, the meteoric rise of XRP from September 18 to 22 was far higher than the price pump of BTC over the similar timeframe; but the drop of XRP from November 18 to December 16 was exactly the same as that of BTC’s.

Furthermore, XRPMOONSHINE suggested that XRP price was being manipulated. He tweeted:

“It is being manipulated to keep it from rising. For example look at XRP/BTC pair. Keeping it under the down sloping resistance from .80 in September. Thats what I mean by Suppressed, Although im expecting a fairly large move to the upside before 4/24/19.”

The “idea” of the price of XRP being manipulated is not unpopular within the XRP ecosystem as Peter Brandt, a famed trader, suggested the same in one of his tweets.

Brandt tweeted:



Conclusion

XRP may have started to decouple from Bitcoin, but it surely hasn’t decoupled completely. The notion that XRP is being manipulated to keep its price below certain levels can also not be confirmed without proof.





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