China wants to ban Bitcoin mining for wasting resources

China’s chief planning regulator is proposing to ban Bitcoin mining, which it says has seriously wasted resources.

Bitcoin mining requires powerful banks of computers dedicated to crunching out blockchain numbers. (REUTERS)

Bitcoin, the digital currency may be considered as revolutionary for the economies but China thinks otherwise. The country is proposing to ban the practice of mining the cryptocurrency for wasting resources.

The National Development and Reform Commission (NDRC), the country's chief planning regulator, is proposing to ban Bitcoin mining, which it says has seriously wasted resources, Engadget reports.

The process of mining is indeed a complex and resource hungry procedure. Typically, it requires powerful banks of computers dedicated to crunching out blockchain numbers. Nearly three-quarters of these cryptocurrencies are mined in China, generating anywhere up to 10 million tons of carbon dioxide.

China is not only concerned about the pollution but also the potential chaos among investors owing to the dynamic valuation of the cryptocurrency. If the new rules come into force, the miners in China may be forced to leave their operations and move to foreign bases.