Local Chinese Authority Seeks to Curb Bitcoin Mining

Chinese local government of Sichuan province has turned hostile towards the booming Bitcoin mining operations and issued a notice proposing a ban on the sector.

The notice has been issued by the financial administrator of the Sichuan province, ordering all subordinate offices to ensure that the hydroelectric power plants should stop investment in digital currency mining projects and also stop adding new mining projects.

Failing to follow the local authorities' order would end up in an investigation on the hydroelectric power plant for illegal construction projects, along with bans, fines, self-demolition, and other administrative measures.

The Financial Administrative of the #Sichuan providence of #China has issued a notice to its subordinate offices ordering them to “guide mining entities to end their mining activities in an orderly manner”. The province accounts for about 9.66% of the global #mining power. pic.twitter.com/mVtihdf9px

— PANews (@PANewsOfficial) May 22, 2020

However, it is not clear whether the proposed rules will be implemented only on hydroelectricity power plants or also on the already operating Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term mining farms.

A key region for China's Bitcoin mining industry

Sichuan is producing almost 10 percent of China’s total hash power, becoming the second province with Bitcoin mining demand only following Xinjiang.

The notice came when the rainy season in the province is approaching which usually sees a massive surge in hydroelectricity production, resulting in the cheap distribution of power to the Bitcoin mining farms.

According to industry experts, this local notice might result in the ending of the rainy season subsidy in electricity costs to the Bitcoin mining farms, not a complete ban on the entire industry.

Though China remains the leading contributor to the Bitcoin mining Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term, many other regions are also becoming popular for Bitcoin mining.

Many commercialized mining farms have been set up in Canada and also in the United States. Iran has completely regulated the sector and recently handed a license to a mining facility with 6,000 mining devices - one of the largest Bitcoin mining facilities in the region.