Will Bitcoin mining in China be affected after the Chinese government announced the cancellation of energy-draining projects?
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Answer Will Bitcoin mining in China be affected after the Chinese government announced the cancellation of energy-draining projects?
According to Chinese journalist Colin Wu, whose coverage focuses on anything related to cryptocurrency trading and crypto mining activity in China, China intends to take some measures that are likely to harm the country’s bitcoin mining industry.
Above is the tweet that Wu shared with the public on Twitter, which carries media coverage from Xinhua and indicates that energy-intensive projects will be firmly banned.
Chinese Communist Party Chairman Xi Jinping pledged that within five years, starting in 2026, China would focus on reducing carbon emissions.
Accordingly, projects that consume very large amounts of energy and cannot meet the applicable standards in the future will be “resolutely banned.”
Wu expected the decision to have a negative impact on the Bitcoin mining industry in China:
Since the bulk of the Bitcoin hash rate is provided by Chinese mining pools, Colin Wu predicts that reducing energy-consuming projects may affect the Bitcoin mining industry.
However, it is widely known that bitcoin miners around the world are doing their best to take advantage of renewable energy sources, mining cryptocurrency in cold climates or countries that provide cheap electricity, such as Iran, northern Russia, Iceland…
It is worth noting that the Chinese president’s decision towards projects that consume a lot of energy does not mean that it directly means the bitcoin mining industry, which also cannot be denied that it consumes a large amount of electrical energy, especially in China, which contains the largest percentage of miners there.
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