[ad_1]
According to the newest upgrade of a Chinese news agency, cryptocurrency mining businesses in the town of Sichuan have been arranged to temporarily close their operations.
Sichuan Orders Crypto Mining Companies to Close for Investigation
Continuing to step up their crackdown on cryptocurrency mining, Chinese governments are believed to have ordered a halt to local Bitcoin (BTC) mining farms.
Sichuan, a provincial town in the western part of Sichuan province, has ordered the closure of local Bitcoin mining operations for review, Chinese financial publication Sina Finance reported Friday.
This proceed by the Sichuan government is a part of China’s strategy to punish cryptocurrencies for quite convincing reasons about the effects of mining activities on the environment in addition to the usage of national electricity. family.
While it remains unclear when or if miners will restart mining operations, it’s apparent that the latest decision will influence major Bitcoin mining farms in Sichuan, which generates considerable amounts of hydroelectricity. most in China.
Sources from a Chinese crypto blogger Colin Wu stated Sichuan has issued a document requesting power generation companies to immediately stop providing electricity to some cryptocurrency mining operations.
According to Wu, the record identified 26 key mining projects and required them to be inspected and closed down. He indicates that the latest move will largely affect large mining farms:
“There are many small and medium hydropower stations in Yunnan, Sichuan, and they can be difficult to get government supervision. However, large-scale projects will be closed in the short term.”
Thus, following a set of crypto mining bans were implemented Yunnan, Qinghai, Xinjiang and Inner Mongolia, Sichuan – the last hope for miners appears to be starting to undergo the same fate. with China’s cryptocurrency crackdown.
What will occur to Chinese miners if Sichuan can also be prohibited from cryptocurrency mining?
This is the worst-case scenario based on BTC.TOP on Wednesday of the week. And if this happens, BTC.TOP will consider moving and relocating the majority of their machines from the nation, mainly to North America, especially Canada and the United States.
“These two countries have developed infrastructure, their regulations are very stable and predictable,” stated Jiang Zhuoer, CEO of BTC.TO mining team.
After North America, BTC.TOP will consider Central Asian nations as it’s simple to move there because of its proximity to Xinjiang.
A BTC. Top spokesperson told Cointelegraph yesterday that many Bitcoin miners have moved to Sichuan after crackdowns in other states, where they may benefit from the area’s vast number of renewable energy. .
However, it appears that the miners’ last hopes were dashed when Sichuan also purchased the mines to close. If miners move to a different location, they’ll be dispersed all around the world, which will lead to decentralization of hashpower. The large centers in China will cease to exist: a few will move to other nations, and others will be broken down into smaller portions, some of which will be worked in your home.
On the other hand, such a ban may also impact machine rates. Small miners will probably not have the ability to proceed to other countries and will be forced to sell their machines. As a result, the machine cost will fall 14%-15%, for 2 reasons: many miners sell their machines; The cost of BTC falls, since the machine price is contingent upon the purchase price of the cryptocurrency.
Join Facebook Groups and Telegram group of the Coinlive to talk and exchange info regarding the Crypto Currency market with more than 10,000 other individuals.
Important Note: All content on the site is for informational purposes only and isn’t investment advice in any respect. Your cash, the choice is yours.
[ad_2]
