The current Bitcoin events should make the heart of every crypto lover beat faster. Current media reports from China could, however, dampen this positive mood somewhat.
Local sources report that the Baoshan authorities want to completely shut down the power supply to the local miners
On November 30th, the Chinese crypto reporter Colin Wu commented on the current situation via Twitter . According to this, the Chinese government issued a ban stating that the power supply for mining farms in Yunnan should be stopped. Wu is of the opinion that this is more about “economic interests” than about a general ban on crypto mining:
The impact of this incident cannot be overestimated. The attitude of local utilities towards crypto mining changes frequently. It is more of an economic interest demand than political pressure.
JustTRADE is the first German provider to offer an all-in-one solution for trading cryptocurrencies (Bitcoin, Ethereum, Ripple, …) stocks, ETFs and certificates. The website and app are designed to be intuitive, offer many useful features and are suitable for both beginners and advanced traders. The best: there are no transaction costs or network fees.
China provides 65 percent of the (assignable) global Bitcoin hash rate . If you calculate this number down to the Yunnan, it comes out that 5.42 percent come from this region. This makes Yunnan the fourth largest mining region in China.
Not the first mining conflict in China
The news comes after Chinese miners complained last month that they could no longer pay their electricity bills . In June 2020, Wu also reported that the Yunnan government closed a total of 64 mining farms after they were suspected of tax evasion. Seven of the closed mining farms were not even completed.
Despite the recent incidents, China is still the global leader in hash rate. However, this could change soon. Due to the tough approach on the part of the government, the local miners are giving more and more shares to other countries. The coming months will show whether this will continue to be the case in the future and whether China will remain at the top of the global market.