China is extremely relevant to the world economy. And the crypto market is especially relevant. Despite the many Chinese bans on cryptocurrencies, China has great weight in this market for multiple reasons. So, to predict the future of the economy and cryptocurrencies, it is not unreasonable to analyze the Chinese case. By having everything a little clearer, we can make better financial decisions.
Why is China so important for the crypto market? First of all, China is the largest producer of cryptocurrency miners, that is, the devices that are responsible for validating transactions and generating new units of digital currencies. China reportedly accounts for 65% of the global computing power dedicated to Bitcoin mining.
Secondly, China is the largest consumer of energy for cryptocurrency mining, which creates a large environmental and social impact. It is estimated that Bitcoin mining in China consumes more electricity than countries like Argentina or Sweden.
