Bitcoin can’t catch a break in China. Chinese authorities ordered the closing of operations that create a large share of the world’s supply of bitcoin, tightening a clampdown that has already shuttered exchanges for the trading of cryptocurrencies in China. A multiagency government task force overseeing risks in Internet finance issued a notice last week ordering local authorities to “guide” the shutdown of operations that produce, or “mine,” cryptocurrencies, according to the notice and people familiar with the information.
Source: Wall Street Journal
Date: January 11th, 2018
1) What does it mean when people say they are “mining bitcoins?”
2) Why would the Chinese government want to shut down bitcoin mining operations?