Recent report Claims that China is on the verge of shutting down bitcoin mining and everything will be cleaned before the end of April this year
Bitcoin can be said to be one of the hot topics in the near future. According to the latest news, China may want to ban cryptocurrency Bitcoin mining. Recently, the Mongolian local official in the most important mining area has issued a statement stating that the virtual currency mining project will be completely cleared and shut down by the end of April. As soon as this news came out, the price of Bitcoin rose by 3%.

As we all know, what is most needed to produce Bitcoin is calculation ability and cheap electricity. Inner Mongolia is the favorite place of Chinese miners. The relatively cool climate and abundant coal storage are favorable conditions for the development of cheap electricity. Chinese entrepreneurs have invested hundreds of millions of dollars to establish large-scale mine in Inner Mongolia, the energy consumption of each mine are comparable to a small city.

Take an Antminer S15 produced by Bitmain as an example. The mining machine consumes 38 degrees of electricity in a day and 1149 degrees in a month, far exceeding the monthly electricity consumption of an ordinary household. And the scale of a mine can easily be thousands of mining machines. This also allows Bitcoin mining in Inner Mongolia to account for 8% of the world's total.

However, the Development and Reform Commission of the Inner Mongolia Autonomous Region issued on February 25 "Several safeguard measures to ensure the completion of the "14th Five-Year Plan" energy consumption dual control target task (draft for comments)", which mentioned that new virtual currency mining projects should be strictly prohibited. It is required to completely clean up the virtual currency mining project and withdraw all by the end of April 2021.

The report pointed out that China has pledged to achieve carbon neutrality by 2060. Beijing has always adhered to a policy of reducing carbon emissions. One of the main sources of air pollution is coal-fired power plants. Inner Mongolia's mining industry, which mainly relies on coal-fired power generation, has naturally become China's realization. The main obstacle to environmental protection goals.

In this regard, Guo Tianyong, director of the China Banking Research Center of the Central University of Finance and Economics, said that cryptocurrency mining cannot meet the long-term goals of China's economic development, so the new measures in Inner Mongolia are a step in the right direction. He also said that as the number of bitcoins produced increases, the remaining number will become less and less, which means that it is more difficult to continue mining, and the energy consumption of mining a coin may be higher than before. Many times.

Another industry player said that closing the mines will further accelerate the integration of the virtual currency mining industry to a certain extent. Once the mine is closed, the mine will find another place to continue. In the face of China's tightening of regulations, many domestic mines have also moved overseas.
[SOURCE]
Axact

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