Bitcoin miners in China receive ’emergency notice’ amidst energy concerns
What used to be a booming Bitcoin mining industry is now under scrutiny. China has already made a move towards restricting the practice after some local regions became victims of energy inflation. Chinese officials have now moved to send a “stop-work” notice to Bitcoin miners. This is to minimize the country’s dependence on foreign energy sources. “The Blockchain is undeniably a great innovation of our time. As a technology, it has been lauded from all corners of the globe for its many benefits and long-term application possibilities. From cryptocurrencies to global supply chain solutions, the Blockchain offers significant potential for the future of our world. But there is one problem with it, or more specifically, with the way most people interact with it: it
Bitcoin miners are finding it difficult to keep up with the costs of running a mining farm in China. Due to the rising costs of electricity and the centralized nature of power production and supply, mining farms are receiving an “emergency notice” from the government. In other words, if the Bitcoin mining farms continue to operate, they may face a complete shutdown of their operations.
News ‘ Bitcoin ‘ China ‘ Mining
The administration of the Chinese capital reportedly wants to determine the impact of cryptocurrency miners on the power grid.
Liam Frost – 30. April 2021 at 17:00 UTC – 2 minutes reading
Beijing’s municipal bureau of economy and information technology has begun sending emergency messages to local data centers asking their operators to report whether they are mining cryptocurrencies, Reuters reported yesterday.
According to sources and a document accessed by the publication, the agency is asking major data centers, including China’s three largest telecom operators, to disclose whether they are involved in mining bitcoin or other cryptocurrencies.
And if the answer is yes, they want to know how much and what percentage of electricity is consumed for these activities, the press release said.
The source of the publication, an official of the agency who wished to remain anonymous, also said that the investigation had been launched directly by authorities in Beijing. However, he does not know why the initiative was started or if it is a statewide initiative.
Why the interest?
While the exact reason for the investigation is unclear, it is possible that Beijing’s latest move is partially related to the recent power shortage in Xinjiang province, home to about 80 percent of China’s cryptocurrency mining farms.
On the 10th. In April, a water leak reportedly occurred at a coal mine in Xinjiang, prompting the central government to temporarily halt work at all these facilities. This caused a massive power outage in the region, shutting down many Bitcoin farms. As a result, the hash rate – or total computing power – of the bitcoin blockchain dropped by 25 percent over the next few days.
Following the disaster, China’s central government launched an investigation to determine what may have caused or catalyzed the accident and what can be done to prevent similar accidents in the future.
Given the high concentration of minors in Xinjiang, it is possible that they are among the suspects in this case. As a result, Chinese authorities may now be measuring the overall energy consumption of the mining sector and determining whether cryptocurrency miners can have a negative impact on the country’s power grid.
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