China gold mine explosion: 22 miners still trapped underground 5 days since blast
Chinese miners shut down mining centers, but not because of halving
The mining market in China is going through hard times again.
The reduction in capacity is not related to the past halving.
The shutdown of farms occurs in the same region where a sweat happened a year ago, which destroyed farms of a large pool.
Mining centers in China began to shut down due to problems with the supply of energy.
China’s Sichuan province is experiencing a water shortage, which is reflected in a shortage of electricity supplies. Due to power outages, local cryptocurrency miners had to turn off their mining farms, according to 8BTC..
According to an official regulation of the Sichuan Municipality, the electricity load in the region has increased by 22% since May. During the same time, water consumption in local rivers decreased by 20%, which led to a shortage of hydropower.
“Under the current circumstances, some areas may experience a shortage of electricity during peak periods …”, – said in the decree.
Also, the Sichuan authorities announced energy monitoring in order to evenly distribute available electricity between areas..
Update. The Sichuan Region Financial Authority has issued a decree according to which local municipalities are required to close all mining farms in the region. The province accounts for about 9.66% of the mining market capacity. Previously, the Sichuan authorities did not oblige mining centers to cease their activities due to the current situation in the region.
Sichuan is known precisely as the world center for bitcoin miners. The choice fell on this region due to the vast volumes of cheap hydropower.
According to some local representatives of the mining market, the rainy season (which usually begins in May) has dragged on this year, and the prolonged high temperature has led to an increase in demand for electricity..
“Some miners remain without electricity for more than three days, and some are allowed to work only at night,” said one of the miners in the Sichuan region..
In 2019, the rainy season also started later than planned. Then, due to heavy downpours, the center of one of the largest mining pools – Poolin Cryptocurrency – was destroyed – not only an alternative to traditional money, but also a tool for earning. To process transactions in the coin network, a computing … More.
However, later, the network began to suspect the real scale of the consequences of heavy rains, since the bitcoin hashrate only slightly changed after the declared flood..
The shutdown of mining power has always played a critical role in shaping the price of Bitcoin. In November 2018, when the price of bitcoin dropped to ~ $ 6,500, from 600 thousand to 800 thousand mining farms were disconnected.
Already in December of the same year, such a large reduction in mining capacity led to the collapse of bitcoin to $ 3200.
Now, many miners are doing much worse. In addition to climatic complications, many Chinese mining companies have been cornered amid news that the major Nasdaq stock exchange may tighten listing rules for all companies subject to PRC jurisdiction..
It is believed that only an initial public offering can save a company from bankruptcy. As a result, Chinese miners have fewer and fewer alternative options, except to start massively selling the mined bitcoins in order to save their position..
What do you think? Are miners actually shutting down farms due to the heat or is it all about the price of bitcoin?? Share your thoughts in the comments and join the discussion in our Telegram channel.
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