It seems that Chinese government officials are still struggling with Bitcoin.
The cheap hydropower used by the giant mining enterprises in China may be coming to an end, according to a local news agency.
The miners Judging by what is written in the news that the cheap electricity used by the electricity will be cut, a circular issued by the Sichuan Electric Power Company is on the agenda that the energy supplied from hydroelectric power plants will be cut off. At the same time, it is not overlooked that Bitcoin mining is called “illegal activity” in the circular.. However, for now, this circular has not been confirmed by official sources.
The Bitcoin Market Is Still Squeezed By The Government
According to the news published by the agency, the statements from energy companies completely contradict the miners’ ideas.. Miners claim ‘waste water’ is used for Bitcoin transactions. As it turns out, wastewater wastes its kinetic energy whether electricity is produced or not.. This explains why electricity prices are so cheap.
However, the state government, which cut off hydroelectricity, will implement the ‘no new generators will be installed’ strategy, and will also assume the ownership of all generators in use.
“There are also strategy suggestions in the circular issued by Sichuan. A new hydroelectric generator will no longer be built. On top of that, all small generators in use will also be kept under control.. This will greatly limit the energy used by Bitcoin miners.”
A change to this extent is a sign that the Chinese government is quite insistent on this issue.. As the prevalence of cryptocurrencies increases, there are laws tightening their use.. This circular is not official for now, but you can follow a possible development on the Koin Bulletin.
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