Recently came out that the Chinese government, in yet another step towards banning crypto mining in the country, had ordered miners in the Chinese province of Yunnan to immediately stop their activities.
At that time, however, there was still a belief that China would at least leave miners in the Sichuan province alone, because there is a lot of use of energy from hydroelectric dams. Which is clean energy.
Toch ban in Ya’an
Nothing turned out to be less true. The local Chinese government in the city of Ya’an, according to Bloomberg, after a meeting on Thursday, decided to buy bitcoin mining farms order them to stop their mining activities. They must do this before June 25. Basically immediately.
Yu’an is a large city in the Chinese province of Sichuan. Estimates assume that at least 10% of bitcoin mining companies are located in Yu’an. Until fairly recently, it seemed that Sichuan would not take any action against bitcoin miners for the time being. Unfortunately, this now appears to be the case.
According to Cinese crypto blogger Colin Wu, more and more jurisdictions within the Sichuan province will follow. In any case, miners are already feeling the downpour.
De hashrate van Ethereum (ETH) fell by at least 7% after China announced these measures, resulting in slower transactions on the network.
Bitcoin mining in Sichuan, China is being shut down one after another. Miners believe that Sichuan’s restrictive policies will be introduced soon. Ethereum’s hashrate fell by 7%, Bitcoin’s hashrate is temporarily not reflected.
– Wu Blockchain (@WuBlockchain) June 17, 2021
Transition to reduced carbon emissions
Perhaps the most important motivation for China to take such tough action against miners in the country is the climate.
In a speech at the United Nations General Assembly in February, President Xi Jingping already announced that China wants to reach its absolute peak in carbon emissions by 2030, after which the country should be completely carbon neutral by 2060.
Whether this goal is attainable is irrelevant in this matter. In any case, China seems to be doing everything it can to achieve this goal. This is also why there is so much action against miners.
Ultimately, this trading of China bitcoin and other cryptocurrencies will do little damage. Miners simply move to other countries where such draconian measures are not the order of the day.
It came out in May that large numbers of miners in China have already moved to the United States, among others. The US state of Texas welcomed these miners with open arms.
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