Chinese bitcoin miners are the latest tranche of the country’s cryptocurrency community to be hit by restrictions. This time it’s not the government but a subsidiary of the State Grid Corporation that has issued the decree, in a move which calls into question the country’s ability to sustain bitcoin mining operations. At present, both the bitcoin and bitcoin cash networks are heavily dependant upon the efforts of Chinese miners, who hold over 80% of the hashrate distribution.
A Major Miner Incident
The cryptocurrency space has grown accustomed to the words “Chinese crackdown” being appended to one another. This year they’ve already been applied to ICOs and exchanges within the country, and it is no secret that the government isn’t enamored with mining either. According to Beijing’s Caijing magazine, hydropower stations have been ordered to cease all supply of electricity to customers involved in bitcoin mining.
Bitcoin mining has long been beyond the preserve of hobbyists, meaning that the only entities affected by the utility company crackdown will be operators of large mining farms. Sichuan Electric Power Company, a national supplier based in Chengdu in the southwest, has issued an edict declaring that it is henceforth illegal to supply electricity for bitcoin mining operations. Hydropower stations found to be flouting this order will be subject to “punishment”.
The End of Cheap Power?
Sichuan province is China’s bitcoin mining heartland. It is here that warehouses filled with row upon row of ASIC miners, mainly powered by cheap hydroelectric, can be found. The province is prized for its Read More Here