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Chinese cryptocurrency miners looking for a new home

Every fall, Bitcoin miners leave southern China, which is rich in hydropower, and move to the north of the country, where most of the electricity comes from cheap coal.

Due to the ban on cryptocurrency mining, this year they can go a long way, with a one-way ticket, writes Bloomberg.
Cheap coal-fired electricity in northern China has so far proved to be very suitable for working with cryptocurrency mining machines.

However, this year, many Chinese digital currency miners, a group that at one point produced more than 75 percent of the world’s bitcoin power, may not return to the south of the country next spring.

In May, Beijing authorities again called for a restrictive stance on cryptocurrencies, although this has been the case for years.

Some state provinces, such as northern Inner Mongolia and Sichuan province, which previously did not interfere in mining, have now abruptly cut off the power of specialized computers that buzz in warehouses and data centers and make bitcoin. As a result, many miners have completely abandoned their operations, and the overall computing power of the Bitcoin global network has dropped by about 60 percent since early May.

Miners from China are now considering going abroad, such as to the United States, Russia or Kazakhstan, where they are already being offered.

China’s moves are primarily driven by huge electricity consumption to mine cryptocurrencies. Electricity consumption is higher annually than in the Netherlands.

Another reason is China’s financial stability, as cryptocurrency miners have to convert to Chinese yuan to pay for electricity, rent or buy new machines.

This allegedly leads to other financial transactions within China, which are difficult for regulators to follow, so the People’s Bank of China issued a trial digital yuan for better control.

However, the story of the Chinese crypto-miners is not over.

El Salvador became the first country to accept the token as a legal tender this month. The country’s president said his country’s volcanic power could be used to mine cryptocurrencies.

However, regardless of the energy source and geography that cryptocurrency miners will eventually choose, Bitcoin’s future is less and less China-oriented.

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