Bitcoin
$ 53,162
Ethereum
$ 3,155.7
XRP
$ 0.9693

Will Bitcoin mining in China take a hit after the Chinese government announces the cancellation of energy-draining projects?

Source:

According to Chinese journalist Colin Wu, whose coverage is focused on anything related to the cryptocurrency trading and cryptocurrency mining activity in China, China intends to take some measures that are likely to harm the country’s bitcoin mining industry.

Above is the tweet that Wu shared with the audience on Twitter, which bears media coverage from Xinhua, indicating that energy-consuming projects will be firmly banned.

Chinese Communist Party Chairman Xi Jinping pledged that within five years, starting in 2026, China will focus on reducing carbon emissions.

Therefore, projects that consume very large amounts of energy and cannot meet the applicable standards in the future will be “firmly banned.”

Wu expects the decision to have a negative impact on the bitcoin mining industry in China:

Since the bulk of the bitcoin hash rate is supplied by Chinese mining pools, Colin Wu predicts that reducing energy-consuming projects may affect the bitcoin mining industry.

However, it is widely known that bitcoin miners around the world are trying their best to take advantage of renewables or cryptocurrency mining in cold climates or countries that provide cheap electricity, such as Iran, Northern Russia, Iceland …

It should be noted that the Chinese president’s decision towards projects that consume energy a lot does not mean that it directly means the Bitcoin mining industry, which also cannot be denied that it consumes a large amount of electrical energy, especially in China, which contains the largest proportion of minerals there.

Related Posts