Apparently the Asian country intends to eliminate the bitcoin mining industry in the country due to concerns about excessive electric power consumption and even worse financing risk. This reflects the opinion of the authorities that cryptocurrencies are not a strategic industry.
Many bitcoin miners have established operations in remote areas without even registering a company. Some have even shied away from Chinese regulations that prohibit end users from buying electricity directly from power producers, and not from power grid operators.
China mines about three-quarters of the world's bitcoin, according to Liao Xiang, CEO of Lightningasic, a Shenzhen mining operation. He claims that Chinese miners have taken advantage of the affordable cost of electricity from regions rich in coal or hydroelectric power, such as Xinjiang, Inner Mongolia, Sichuan and Yunnan.
Digiconomist, an Internet portal that tracks the evolution of the industry, explains that it accounts for 0.17% of global electricity consumption, more than 161 countries.
The Chinese Government allocates investments and applies various industrial policies in order to take the lead in strategic sectors such as artificial intelligence and robotics. But the action against bitcoin reflects that it does not consider that cryptocurrencies deserve state support.
Bitcoin mining "consumes a large amount of electricity and also encourages an atmosphere of speculation with 'virtual currency'
The order does not ask the regional authorities to close the mining operations directly, but force their disappearance through the strict application of policies on electricity consumption, land use, tax collection and environmental regulation.
Chinese miners are now looking for ways to move their operations abroad, either by moving factories or selling their experience. Cheap electricity and cold weather, which helps prevent overheating of computers, are the main requirements. Canada, Iceland, Eastern Europe and Russia are considered the most promising destinations.
Industry players argue that, in any case, China was never a particularly suitable location for mining, even taking into account the costs of electricity in the chosen regions, which are lower than the national average. China's current dominance is mainly due to the good quality of the supply chains of the components used in the mining process.
"The difficulty is that settling in other countries requires time and capital to build large-scale data centers," Liao explained. "It consumes a lot of electricity, and the typical industrial park does not meet the requirements"
yes,you are right.
Si, eres nuevo sigueme y ayudanos en la comunidad @cervantes