Bitcoin Mining Industry Gets a Boost in China at Wasteful Energy Demonstration

Published January 1, 2020 | Updated January 1, 2020

crypto tether china
Image Source: Shutterstock

Bitcoin Mining Industry Gets a Boost in China at Wasteful Energy Demonstration

It is no secret that Bitcoin mining is primarily located in China with over 60% dominance, some say it could be even more.

In the past few years, the business has been highly profitable with the growth in the price of Bitcoin. However, many consider the practice wasteful altogether utilizing the electrical energy.

According to a recent report, Sichuan authorities are apparently pressuring the miners to scale down their operations in lieu of the dry season until April.

Sichuan has a large amount of miners in the region due to the low cost electricity. Moreover, the higher altitude also provide ambient cooling which further reduces the cost.

First Update on the Symposium Assessing the impact on Mining during dry season in China (Source)

However, according to an independent report by Molly, Head of Marketing for a mining firm in China and China operations journalist for Bitcoin Magazine, the current discussion might be leading to the legalization of mining in a specific regional belt. She tweeted,

Sichuan has the richest Hydropower in China, and most of them are in the west, very under-develop areas, some even the poorest cities in China, a lot mountains, so there ain’t many company like factories that uses a lot power.

Ganzi Demonstration Area

China is known to foster industry growth via a region-wise strategic approach. The dry season ahead does arises a concern for the regulatory authorities. However, according to Molly’s sources, mining firms has been invited by the symposium to join its wasteful energy demonstration area. She notes,

Latest update on this one , this symposium got postponed to Dec 27th, according to a reliable source during the symposium , the local authorities affirm that bitcoin mining’s positive affect on wasted electricity, and Ganzi might become “mining demonstration area”

The demonstration area is located at “KaWu village , Xindu bridge town, Kangding, and Ganzi.” With the co-operation of industries that aid in using the wasteful energy, the electrical companies aim to increases efficiency.

Do you think that the ‘demonstration’ will leading to an increase in the size of mining business? Please share your views with us. 

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
Nivesh Rustgi 1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
Follow Nivesh @