Chinese Bitcoin Miners Pressured to Reduce Operations Due to Electricity Shortages

[Fatihgani12 348]

Bitcoin miners (BTC) in Sichuan province in China are reportedly under local authority to reduce their operations due to lack of electricity.

On December 29, the Asia Times reported that during the dry season, which expanded from October to April, power supplies dropped dramatically in Southwest China, which is why the local government tightened screws on mining companies to reduce their operations.

The mining company Bitcoin is officially banned but tolerated in Sichuan province during the rainy season when hydroelectric power plants produce more electricity than is needed, utilizing excess energy thanks to East Asian rain.

However, during the dry season, local authorities try to ensure adequate power supplies for local residents and businesses and therefore redirect their focus to regional Bitcoin farming, which uses excessive amounts of electricity to run their mining rigs.

The Chinese authorities are not only cracking down on BTC mining agriculture. They are also chasing power plants. Two power plants received fines of around $ 140,000 in December for providing electricity to Bitcoin miners without getting a power license.

China, whose BTC miners are currently responsible for 66% of the global hash rate, continues to struggle against the illegal use of energy by crypto miners.

In mid-November, regulators in the Inner Mongolia China Autonomous Region tightened their grip on the crypto mining company, sending an inspection unit to ensure the cleaning and repair of crypto mining companies in the region.

In December, Chinese authorities seized nearly 7,000 crypto mining machines, illegally consuming electricity. The seizure occurred as part of an inspection of more than 70,000 households, 3,061 traders, 1,470 communities, as well as factories, mines, yards and villages in the Kaiping District, Tangshan City.

What do you think, give your opinion about the reduction of Bitcoin mining operations due to lack of electricity?

[BTC Future 3946]

I don't think China will crackdown on miners. From what I noticed the Chinese governments didn't take action against Bitmain and other Chinese miners before. I also don't think China has electricity shortages problem. This might have to do with unlawful competition against Bitmain, with chinese miners stealing electricity and producing with zero cost.

[Kuroashii 181]

This is the biggest issue when it comes to mining...too much electricity is needed here. If they really build a certain mining site, they should produce their own electricity so other people will not be disturbed.

[Maaz sultan 265]

i guess china will comeback in bitcoin mining in chine there shortage of electricity but they controlle on this thiy are very intelligent . they are mine alot of bitcoin as compare to other countries .

[Naga 1250]

4 minutes ago, Maaz sultan said:

i guess china will comeback in bitcoin mining in chine there shortage of electricity but they controlle on this thiy are very intelligent . they are mine alot of bitcoin as compare to other countries .

i think i have read somewhere that china is mining over 50% of the entire bitcoin mining power and if they reduced that then they will cause slower bitcoin transactions.

[patitaycute 648]

It was the main issue about the high consumption on mining industry. It was positive effect on China and negative effect on crypto industry. Hope that the government of China will find the best way to solve this problem.

[bentayebsalah 2280]

I do not know how the Chinese miners behave towards this problem and how they will find solutions to overcome this crisis and search for other sources of energy, or they will leave for a better place that will provide them with electricity.

[mani982 286]

China is a big industry for Bitcoin mining.China is the big industry which is making Powerful graphic card .from all other country of world the big number of bitcoin miners belong to china.

[Interface User 1070]

If that is the case. Many problem may occur in the Chinese People because if miner limit their movement, the Bitcoin inside the Blockchain cannot be moved because only miner can do that thing.

[bliznec 22267]

Lack of electricity is the problem that comes first today. Bitcoin mining is designed for just that. Electricity is a very painstaking task that requires bitcoin mining. 

[Irin3 74]

Yes This is the biggest problem in mining ... there is a lot of electricity required.  If they really build a specific mining site, they should produce their own electricity

[SuperCrypto 7193]

A recent report revealed that China has more of the Bitcoin mining market than any other country in the world. China is the world's largest market for computers designed to mining Bitcoin and other cryptocurrencies, but these activities have declined due to regulatory concerns.

[mani982 286]

Chinese government is very strict about crypto and bitcoin.There are too many Miners in china who they are mining bitcoin very large quantity .Chines government increase the electricity cost and also seize some mining firms in china.

[andrehol 16294]

Any difficulties for Bitcoin miners lead to its rise in price. China will overcome electricity problems. They build huge houses in a few days. And the power plant will be able to quickly build.

[Opinder 1310]

It might be for few days, China do not want to stay behind in crypto and could not crackdown mining for long time. Or it may be fake news because China would not have shortage of electricity.

[suzuya 945]

Electricity is the most important resource for crypto miners and also for people who use or work with cryptocurrency, without electricity we can not access our wallets and some exchanges. Generators will do but it will not be enough because oil might have shortage as well.

[babaji 1228]

Bitcoin mining does consume a lot of electricity, and banning mining sites is probably not the best way to go. Instead they can fine them, and deduct the electricity cost for their bitcoin mining rewards, something like a 5% of 10%, and that should be enough to cover all the losses, and they can find out alternative source of energy with the fine 

[Amirul Islam 382]

On 12/31/2019 at 12:16 PM, Fatihgani12 said:

Bitcoin miners (BTC) in Sichuan province in China are reportedly under local authority to reduce their operations due to lack of electricity.

On December 29, the Asia Times reported that during the dry season, which expanded from October to April, power supplies dropped dramatically in Southwest China, which is why the local government tightened screws on mining companies to reduce their operations.

The mining company Bitcoin is officially banned but tolerated in Sichuan province during the rainy season when hydroelectric power plants produce more electricity than is needed, utilizing excess energy thanks to East Asian rain.

However, during the dry season, local authorities try to ensure adequate power supplies for local residents and businesses and therefore redirect their focus to regional Bitcoin farming, which uses excessive amounts of electricity to run their mining rigs.

The Chinese authorities are not only cracking down on BTC mining agriculture. They are also chasing power plants. Two power plants received fines of around $ 140,000 in December for providing electricity to Bitcoin miners without getting a power license.

China, whose BTC miners are currently responsible for 66% of the global hash rate, continues to struggle against the illegal use of energy by crypto miners.

In mid-November, regulators in the Inner Mongolia China Autonomous Region tightened their grip on the crypto mining company, sending an inspection unit to ensure the cleaning and repair of crypto mining companies in the region.

In December, Chinese authorities seized nearly 7,000 crypto mining machines, illegally consuming electricity. The seizure occurred as part of an inspection of more than 70,000 households, 3,061 traders, 1,470 communities, as well as factories, mines, yards and villages in the Kaiping District, Tangshan City.

What do you think, give your opinion about the reduction of Bitcoin mining operations due to lack of electricity?

I read many posts about crypto mining.  I got that crypto mining isn't profitable for now because of huge electricity bill. But I'm China it's too cheap and mining is profitable.

[AbdulKhan1033 2]

I think this is happening because of there population and it can be overcome if the government will take a poo at the situation of the bitcoin running in the country, If I am not mistaken they have largest bitcoin operation that can be use to overcome the situation they find the selves in

[Brushless4500KV 4214]

Chinese miners have to think about more efficient ways to continue their mining operations. If the electricity is reduced, they have to mine easier coins like Doge and XRP and invest less on difficult coins. One outcome of this situation is that bitcoin supply will be reduced and we may see higher prices again. But mining industry is a vital part of cryptocurrency survival and I hope any issue to be solved soon otherwise we may have problems in our transactions.

[jamesvince 2389]

Is mining operation need huge electricity. I have no information regarding using of electricity by mining of bitcoin. So they can make their own salar energy for mining process. 

[Syedbesharat 5423]

This can effect the BTC flow in the market because the China is a biggest miner in the  world for BTC.Where the price of BTC can not be go to moon before halving.We have to wait till May for season ending.Then the mining track come back to usual out put.We have corona Virus also in china which effected the china economic.

[tienda 8776]

China is the place that preferred by many people around the world where they are installed their machine to mine Bitcoin, so with the time will create an overcharge. for this reason I think the government will react to reduce the operation.

[BTC Future 3946]

3 hours ago, MarsDota2 said:

I think that bitcoin mining in china is very hard because they are just new in the world of cryptocurrency. I hope they can improve in no time

 

 Bitcoin mining in China is cheaper from the rest of the world, because the miners there negotiated extremely favorable electricity prices with the power networks. Price of mining in China is around $2500 today. In the rest of the world it is around $7000.

 

China is not new at all in the cryptocurrency world. The chinese got heavily invested since 2011 and concerning mining around 50% of it is done in China.

 

Edited March 30, 2020 by BTC Future

[Whited35 15285]

I have also heard about this news. So I have found most of the people are thinking like Bitcoin mining is so aesy. We have to pay the electricity charge, sometimes irreversible hardware damage can occur while mining the Bitcoins. I think after Bitcoin halving most of the Miners will leave mining activity.