Chinese Bitcoin miners are increasingly facing difficulties – at least if they rely on fossil fuels. New measures prohibit more miners from mining BTC. The hashrate has fallen sharply.
Local governments in China continue to crack down on Bitcoin mining farms. As the crypto news portal The Block reports, citing official documents, further mining farms in the provinces of Xinjiang and Qinghai are to be closed. According to this, miners in the Zhundong economic and technology development zone in Xinjiang are affected. The area is located in the autonomous prefecture of Changji Hui and is one of the coal-richest regions in the country. Since 2005, the Zhundong industrial region has been targeting black gold economically. Coal power, electricity, metallurgy and coal chemistry were among the most important industries in the economic zone in February 2019 .
But apparently not only black, but also digital gold was mined in Zhundong. Because according to the note quoted by The Block , the local government has asked the Bitcoin miners in Zhundong to cease their activities by June 9, 11:00 a.m. The background to the order is therefore the “Measures for the examination of energy saving in capital investment projects ” adopted by the National Reform and Development Commission of China . These aim, among other things, to “promote the scientific and rational use of resources in investment projects, to eliminate energy waste at the source, to increase energy efficiency and to strengthen the management of total energy consumption”.
Total ban in Qinghai
Meanwhile, Bitcoin miners in Qinghai Province also have to throw their ASICs in the grain. This emerges from an array out of the local State Office of Industry and Information Technology, the The Block reporter Wolfie Zhao shared on Twitter has .
It is strictly forbidden to initiate and approve different “mining” projects for virtual currencies in different regions, [furthermore] all existing “mining” projects for virtual currencies are to be closed completely.
Compared to Xinjiang, Qinghai plays a negligible role in the global Bitcoin mining business. In April 2020, the province provided just 0.26 percent of the total hashrate sponsored by China.
Bitcoin hashrate is weak
At the time of going to press, the Bitcoin hashrate recorded a significant drop in a 24-hour comparison. At around 111 EH / s, the hashrate is at its lowest level since November 2020.
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China and Bitcoin: It remains ambivalent
Due to the strong temporal correlation between the hashrate drop and the shutdown of the mining operations in Zhundong, a causal relationship cannot be ruled out. However, it was recently shown in April that the hashrate can quickly recover from such drops. In addition, the Chinese government seems to be targeting coal-powered mining farms in particular. Bitcoin mining, which relies on renewable energies, is therefore not affected. On the contrary: As a source told BTC ECHO reports , China will do a pioneer in the field of sustainable Bitcoin are mining.
The Bitcoin course seems to have coped with the supposed horror news of the hashrate slump so far – with a daily increase of almost 7 percent, BTC is still defying the prophecies of doom .