Citibank Praises BTC, While China Seeks to Limit Mining ActivityMarch 2, 2021
From both ends of the world, bitcoin is the target of much speculation. In the west, it appears to be the subject of positivity, with the likes of Citibank commenting that bitcoin is likely to be at the center of much cultural and revolutionary change. In the east, countries like China are looking to implement serious limits on bitcoin and crypto mining. With both sides offering opposing views, it looks like bitcoin has used this time to heal some of its wounds and bounce back by roughly nine percent at press time.
Citibank Is Working to Push BTC Forward
Paolo Ardoino – CTO of Bitfinex – examined the current situation surrounding BTC and said:
Bitcoin seems to have bounced back today as cryptocurrency markets start the week in a resurgent mood. The backdrop of huge pent-up institutional demand and interest from long-term investors may be here to stay, but time will tell.
The world’s number one cryptocurrency has been suffering as of late. The asset ultimately fell by more than $10,000 last week, dipping down from around $57,000 per unit to just over $46,000. Now, at the time of writing, the currency has surged back into the $48,000 region, thereby incurring a $2,000 spike over the course of a few days.
It’s nowhere near as impressive as some of bitcoin’s past figures, but it’s a step in the right direction – especially when one considers how much has been lost in the space of just one week. The move appears to stem from words offered by Citibank, which in a recent report, acknowledged that there were risks involved with both mining and trading crypto, but that the positives heavily outweighed the negatives.
The document explains:
There are a host of risks and obstacles that stand in the way of bitcoin progress but weighing these potential hurdles against the opportunities leads to the conclusion that bitcoin is at a tipping point and we could be at the start of massive transformation of cryptocurrency into the mainstream.
In addition, Citibank also suggested that bitcoin could ultimately serve as the primary form of currency for international trade between countries.
By contrast, the words and comments from Citibank are potentially being countered by the likes of China and its Inner Mongolia region, which is famous for the heavy amounts of crypto mining that occur there and its low electricity prices. Recently, the area said that it was looking to ban all crypto mining within the next month, and that all present operations will cease by mid-April.
Too Much Expended Energy!
The goal is to limit high-energy projects within China and reduce environmental strain. In a recent draft of the bill working to reduce energy costs, the following is written:
[Inner Mongolia] will tighten its energy control measures and bear the targets throughout all economic and social aspects.
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