In recent news, Bitcoin (BTC) miners in China have been ordered to cease all mining operations. The Chinese region of Xinjiang has initiated a crackdown of sorts on the miners, and as such, the local authorities have set the deadline of later today (the 9th of June 2021) for all of the mining companies present in the local area to completely shut down all mining activities.
It hadn’t been that long ago that BTC mining had experienced a ban in China shortly after Elon Musk’s decision to no longer list BTC as an available payment option for his company, Tesla. This had been done due to mounting concerns about the massive energy consumption and continued damage to the ecosystem that the mining was causing.
‘Strategic energy region’
The Xinjiang region is often referred to as the country’s ‘strategic energy area,’ mainly due to the abundance of coal, natural gas, and various other fossil-based resources. Now though, it can be expected that the BTC hash rate will indeed drop following the aforementioned shutdown of the mining operations.
The Reform Commission, alongside Changji Prefecture Development, was responsible for issuing the order for the shutdown, and it had also been noted that miners are required to report the suspension of any mining rigs to the commission as soon as possible.
Moreover, Dovey Wan, a prominent Chinese cryptocurrency influencer as well as Primitive Ventures founder, had stated via Twitter that the Xinjiang region is now looking to Inner Mongolia as an example to follow in terms of how to best handle BTC mining operations. The influencer had stated that as of right now, it is the Sichuan province that may indeed serve as the last beacon of hope for the local miners. Furthermore, she also anticipates that the local authorities shall take action against all forms of cryptocurrency trading, inclusive of OTC, soon.
CO2 emissions reduction still the goal
Xi Jinping, the current Chinese President, had stated that as of 2026, the country should start calling off those projects which are known to consume high amounts of energy. This will be done to hopefully put a dent in the carbon footprint which is being produced thanks to the nation’s various industries.
Crypto mining is one of these ‘projects’ and is hence expected to be completely shut down unless an eco-friendlier alternative can be found and subsequently implemented. Numerous miners have already left China to seek better opportunities elsewhere as a result.
