GPUs May Get Cheaper As China Bans Cryptocurrency

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China has declared that all cryptocurrency transactions in the country are hereby illegal. Despite the fact that the country was one of the largest markets for cryptocurrency, the government has remained suspicious of it. Trading was already banned earlier in 2019, however it was still being conducted via foreign currency. However, the People’s Bank of China has now announced that all transactions are illegal.

China has always been weary of cryptocurrency due to the fact that it’s unregulated and hard to trace. In June of this year, the government instructed banks not to accept Bitcoin. This caused the worldwide price of Bitcoin to plummet 10% in value, landing below $30,000 per USD per coin. Local Bitcoin miners were also cracked down upon, including in the Sichuan Province, a location rich in cheap hydroelectric power. China accounted for roughly 65% of worldwide Bitcoin mining in 2020.

As spotted by PCGamer, the translated statement by People’s Bank of China says, “Virtual currency-related business activities are illegal financial activities [and] seriously endangers the safety of people’s assets.” This means that engaging in any type of crypto activity will be met with prosecution.

An inadvertent result of this could be a fall in the price of graphic cards worldwide. Crypto miners were hoarding GPUs to accelerate the mining process, but this crackdown means that the massive mining operations in China will cease.

It’s not just cryptocurrency that the Chinese government has been going after recently, it has also been putting restrictions on gaming. Children below the age of 18 will only be authorised three hours of gaming a week; that’s one hour per day on Friday, Saturday, and Sunday, plus national holidays. These laws were put into place by Chinese authorities as a way to tackle gaming addiction.

Additionally, China has also halted approvals on all new online video games after a meeting with Tencent Holdings and NetEase. This is another way in which the government aims to crack down on video game addiction. Industry executives were called in and told that their “solitary focus” on profit must cease and that all approvals for online games would be frozen until further notice.

Link Source : https://www.thegamer.com/gpu-cheaper-china-ban-cryptocurrency-illegal-bitcoin/