The massive growth of cryptocurrencies has attracted the attention of several regulatory authorities in the wrong way. The Chinese government is not too keen on promoting cryptocurrencies in the near future. However, the decentralized model of this industry can help it to survive such a crisis in the long run.
Elon Musk supports crypto
Talking to the sfgate at a tech conference in California, the CEO of Tesla, Elon Musk, expressed his support for the crypto industry. He said that it might be impossible for the regulatory authorities to destroy the crypto industry completely. However, he added that the government agencies might be able to slow down the growth of the crypto sector for a few more years.
Power shortage in China
Meanwhile, there are reports emerging that the recent crackdown on the crypto industry in China has got to do with the power shortage in the country. As the demand for power has grown abnormally in recent months, there are speculations that crypto-mining could be the reason for such activities.
The power generation issues continue to haunt China in a big way as the growth has been steady in recent years. Apart from that, the country was also severely affected by the health crisis in the last few years. All these events meant that new power plants were not able to start power generation as per their expectations. The last few weeks have seen a huge demand for power in parts of South China. The authorities suspect that massive crypto mining operations may be the culprit in this situation.
Elon Musk, on the other hand, believes that it is best for the authorities to not worry about regulating the crypto industry. As the entire sector works in a decentralized manner, it is likely to take away power and control from the hands of the government agencies. For this reason, many regulatory agencies are not too keen on the growth of the crypto industry.