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China Could Hold 60% of the Residual Bitcoin- Tough Competition for Digital Yuan

Highlights

    China is known for its immense mining power, can generate the majority of remaining Bitcoins in the coming days.

    The Digital Yuan has recorded for more than $160 million worth transaction as of the date

    Bitcoin and Digital Yuan might get into a heated battle in the coming days.

Will China Dominate the Digital War with the US?

As Coinpedia reported earlier that the US and China both want to be the leaders in the world of technology, China has gained a leg up. With the known fact that China has the majority of the Bitcoin base in the world, now it has managed to own 60 percent of the Bitcoin’s hash rate power. But what does it signify?

Currently, only 2.5 million bitcoins are available to mine and has entered a very crucial phase as these bitcoins could possibly play a vital role to determine the All-time highs of the digital asset. Hence, at this point, if China has more than half of the world’s mining power, then they might have an added advantage.

However, probabilities of the miners, sell-off their bitcoin rewards cannot be ignored. As mining requires a hell lot of resources, miners may also sell off their bitcoins to compensate the expenses. In such a case, Bitcoins may exit China and may land back to the traders.

On the other hand, the US which is undergoing a serious financial crisis may not allow China to beat them in terms of technology and economy. Hence, with the Presidential Election on its toes, it would be very exciting to see the next possible steps the US could take to outpower China.

Digital Yuan Widely Adopted in China

Aiming to be the leader of the world, China rolled out World’s first Central Bank Digital Currency(CBDCs), Digital Yuan-a Pilot program. As per new reports, Digital Yuan has been widely used across all the cities where it was launched for testing.

Nearly 122,000 new digital wallets have been created and approximately 3.13 million transactions have been successfully carried out. These transactions accounted for early 1.1 billion Yuan ($162 million) in just 6 months. 

With this huge development, in China will the Digital Yuan face competition from Bitcoin, or both will have their own user base? 

However, China might have banned ICO practises but it has clearly stated that they have not restricted themselves from dealing with cryptocurrencies.

China recently had lost nearly 20 percent of the mining power due to heavy rains and floods which destroyed mining farms completely. But now recovering from losses, has gained 60 percent supremacy with the mining power. 

Overall, the current situation in the US might be not much favourable to give a tough fight but a strong comeback may be expected very soon.

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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