Cryptocurrency mining operations in China may be subject to stricter monitoring in the future. there apparently The government is particularly concerned about the energy consumption of bitcoin mining.
April 27th Beijing sent an “emergency notice” to Perform controls in data centers involved in mining operations for Bitcoin and other cryptocurrenciesWhat seems to have been greeted with some panic in China.
The Chinese columnist Colin Wu o Wu Blockchain on Twitter has been quick to downplay fears about how this could affect Chinese bitcoin miners in the short term.,TO demonstrateTo what:
â € œThat caused panic in China. However, the Chinese government said it was only conducting an investigation. Data centers are difficult to use for Bitcoin mining and are mainly used for “ETH Filecoin”.
According to Chinese state media PengPai (accessed by translation), The “emergency notification” was a routine task of the Beijing City Bureau for Business and Information Technology, as it is supposed to take into account the energy consumption of mining operations in data centers in Beijing.
It is not yet known whether the controls will be carried out at national level or what future effects this could have. According to PengPai, Yu Jianing, rotating chairman of the blockchain committee of the China Communications Industry Association, is a sign of the future. Believes that “Against the background of CO2 neutrality, the future blockchain dismantling will indeed have stricter controls. “
This notion is maintained when taking Inner Mongolia as a reference, which will no longer be a mining center. Cryptocurrency miners have until the end of April to shut down their operations China recently banned the mining of cryptocurrencies in the zone in an effort to meet its new CO2 emissions reduction goals.
China’s 14th “Five-Year Plan” sets a number of targets, including a reduction target of 18% for “CO2 intensity” and 13.5% for “energy intensity” between 2021 and 2025.
Beijing is not known as a cryptocurrency mining hub. because their electricity prices are higher than those of other regions, This could mean that other centers like Xinjiang and Sichuan are the destination for the future.
Data from the Cambridge Bitcoin Energy Consumption Index (CBECI) estimate this Xinjiang accounted for 35% of China’s bitcoin hash power in April, and it accounted for about 23% of the world’s hash rate.
Tighter mining conditions could have global effects. Some believe Bitcoin’s sharp drop to $ 50,000 earlier this month was partly due to Xinjiang’s hash rate falling due to power outages around April 17th.
The popular one Cryptanalyst Willy Woo speculated that a “whale with a better understanding of what was happening in China” sold his holding company before the mining basins were temporarily closed. citing a transfer of 9,000 bitcoins to Binance on April 16.
The power outage in Xinjiang (which powers a significant part of the BTC mining network) was known before the BTC price slump. Here is the local news for April 15th. Https://t.co/dGS7GRPj2y
to???? Willy Woo (@woonomic) April 18, 202
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