The current Bitcoin events should make the heart of every crypto enthusiast beat faster.
Current media reports from China could however somewhat cloud this positive mood. Local sources report that the authorities in Baoshan want to completely shut down the power supply to the local miners.
On November 30, the Chinese crypto reporter Colin Wu commented on the current situation via Twitter. According to this, the Chinese government has issued a ban stating that it will cut power to mining farms in Yunnan. Wu is of the opinion that this is more a matter of „economic interests“ than a general ban on crypto-mining:
The impact of this incident should not be overestimated. The attitude of the local energy suppliers towards crypto-mining is changing frequently. It is more a demand out of economic interest than political pressure.
Simple – Unbeatably cheap – Made in Germany
As the first German offerer justTRADE offers an all in One solution for the trade with crypto currencies (Bitcoin, Ethereum, Ripple, …) shares, ETFs and certificates. The website and app are intuitively designed, offer many useful features and are suitable for both beginners and advanced traders. Best of all, there are no transaction costs or network fees.
China supplies 65 percent of the (attributable) global Bitcoin hash rate. If this figure is reduced to the Yunnan, it turns out that 5.42 percent comes 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 can no longer pay their electricity bills. In June 2020, Wu also reported that the Yunnan government had closed a total of 64 mining farms after they were suspected of tax evasion. Seven of the closed mining farms had not even been completed.
Despite the current incidents, China still holds the global leadership position in terms of hash rate. However, this could soon change. Due to the harsh actions of the government, 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 the global leader.