Bitcoin Mining Operations Can Still Function in China
After previously being claimed that Chinese authorities have decided to ban bitcoin miners from conducting such operations in the country, now a local media report indicated that authorities did not actually prohibit such operations.
Ciaxin, a Chinese media outlet, claimed that the rumors on shutting down bitcoin mining are not actually true. This means that authorities have not asked miners to end their mining operations. Bitcoin mining is actually quite popular in China, which has become the home of an impressive part of the world's mining operations.
Why is China a preferred location for bitcoin miners?
The Chinese province in which mining is extremely popular is Sichuan. Also, the autonomous regions of Inner Mongolia and Tibet are considered to be good mining locations due the fact that here hydroelectricity costs are quite low and the temperatures are cooler, which means that the energy for bitcoin mining is easier to get.
Where have authorities intervened?
According to local media, Chinese authorities had an intervention when it comes to bitcoin mining, but it was not a ban. In fact, the authorities decided to remove the friendly treatment allegedly given to miners who are located near hydroelectric power plans which provide cheap electricity.
Local media claimed that authorities are concerned that some bitcoin miners are getting preferential treatment, tax cuts and land use rights to establish their bitcoin mining centers. This could have allowed miners to use electricity at lower costs, which is something that the authorities plan on stopping.
Reportedly, Chinese authorities have been investigating the energy consumption associated to bitcoin mining for quite some time. The investigation is believed to have started following concerns that the high energy use associated to mining led to lower amounts of energy for other regions.
It has also been claimed that the People's Bank of China had a private meeting with a "major internet finance regulator" which can lead on a more standardized electricity use for mining operations.