By Shelly Melancon (Switzerland)
The cryptocurrency mining activities in Beijing will be subjected to tight regulation in the years ahead. Credible reports indicate that China’s government is particularly troubled about the energy consumption that is characteristic of Bitcoin mining.
The Asian superpower issued an “urgent notice” for the relevant authorities to carry out a thorough assessment of the different data processing centers where Bitcoin and other cryptos are mined on 27th April. The result from these assessments left a lot of people in shock.
Not So Bad After All
But, Colin Wu, a popular columnist in China was very fast in playing down the growing fears among the populace on how the government regulations will affect the activities of Bitcoin miners.
According to Wu, the government’s regulations indeed raised alarm in China. But the communist state only states that it was carrying out an assessment. It is a challenging task to utilize data processing centers in mining Bitcoin. But it is easy to mine ETH Filecoin in these centers.
According to PenPai, a popular Chinese media house, the urgent notice that was issued by the government was nothing but another habitual task carried out by the relevant authorities as it hunts for a more lucid depiction of the energy usage courtesy to cryptocurrency mining activities in data processing centers in Beijing.
Also read:It has not been made known if the assessment would be conducted nationwide, or what its potential consequences may be. But, PengPai revealed that whatever becomes of the result, it is an indication that something noteworthy is about to happen. He opines that the potential for cryptocurrency mining activities will incur tighter regulations under the guise of carbon neutrality.
His opinion holds water if one considers what happened in Inner Mongolia – no mining activities happen there anymore. Cryptocurrency miners. The Asian Dragon banned the mining of cryptocurrencies to attain the goal it set for itself to reduce the emission of carbon and greenhouse gases. Afterward, it issued a notice to miners to shut down their mining operation on or before the end of April.
Sichuan and Xinjiang To Become The Next Targets
The fourteenth “5-year plan” of the superpower sketches out some goals it aims to achieve. These include an 18% reduction in the emission of carbon dioxide and a total decrease of 13.5% energy intensity by 2025.
The state capital is not famed for its crypto mining activities because it has higher-than-normal electricity costs than other parts of the country. It may imply that places like Sichuan and Xinjiang may become the next targets.
According to information from the CBECI (Cambridge Bitcoin Energy Consumption Index), Xinjiang consumes about thirty-five percent of the BTC hashing power in China as of April. On the global stage, it consumes nothing less than twenty-three percent of the Bitcoin hash rate.
Additional strict mining circumstances may have worldwide effects; some people think that the sharp decrease in the price of Bitcoin to $50,000 was partly due to a fall in its hash rate in Xinjiang courtesy to an epileptic power supply on 17th April.
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