Bitcoin soars past $50,000-mark; Polkadot gains 5.7%

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World’s biggest and the oldest cryptocurrency Bitcoin gained 3.76% to $51,641.27-levels on Monday, while the second-largest virtual token, Ethereum advanced 1.58% to $3,949.28. Eight out of the top 10 cryptocurrencies traded higher on September 6, with Tether USDT and USD Coin being only laggards. Polkadot was the top gainer and rose 4.85% to $34.20. Similarly, Dogecoin advanced for the second consecutive day by 4.25% to $0.31.

Cryptocurrency prices

*All prices as of 6th September 2021, at 5:15 AM, Table Source: Coinmarketcap.com. Conversion rate for the USD to INR used was $1=Rs 72.99

Cryptocurrency mining companies in China in trouble

Bit Digital, a Nasdaq listed cryptocurrency mining company has been increasingly shifting over 20,000 of its machine from China, according to a report published by The Economic Times. This follows an unrelenting crackdown of China’s communist party on cryptocurrencies which has forced other mining companies like Bit Digital to migrate their machines out of China.

The New York’s based firm’s high-powered computers are at the core of making money by tapping them into cheap electricity sources which would help them cracking mathematical problems and unlock new Bitcoin.

China’s Bitcoin mining has accounted for around 65% of global mining and is also the world’s largest Bitcoin mining hub. In 2020, it has mined two-thirds of world’s Bitcoin. Despite all of this, the country has intensified its stranglehold on cryptocurrency mining and trade.

While comparing it to other regions of the world, China has made Bitcoin mining even more affordable by having subsidised hydropower. However, it uses a lot of energy at 112.57 terrawatt hours, which makes cryptocurrencies come at an higher environmental cost.

If the crackdown on cryptocurrencies had not been undertaken then, China alone would have emitted 113 million metric tonnes of carbon dioxide. According to experts on Chinese economy, the crackdown on cryptocurrencies is a charade.