China is cutting off supply of cheap power for Bitcoin miners.
Apparently, the general anti-Bitcoin stance of the Chinese government continues, with reports that the cheap hydroelectric power being used by the largest Chinese Bitcoin mining facilities may soon be a thing of the past, according to local media.
The statement regarding the cessation of cheap mining electricity indicates that the Sichuan Electric Power Company has issued a circular indicating that it will no longer provide the necessary power from its grid-connected hydropower stations. The circular suggests that Bitcoin mining is ‘illegal operation.’ The circular has yet to be confirmed.
Bitcoin using surplus, government still squeezing
The statement from the power companies does not reflect the general feeling of miners, according to the article. Miners feel that the Bitcoin operations are using ‘discarded water’ – water that is let go without producing electricity, which is why the price has been remarkably low.
Nevertheless, the supply cut off is coming from both sides, as the province has declared both a ‘no new power plants’ policy, as well as acquiring all existing power plants. Per the article:
“Sichuan, on the one hand, issued a circular at the policy level, requiring no new small hydropower stations; [at the same time]the power company is stepping up its acquisition of small hydropower stations to promote the latter’s power grid, [leaving]Bitcoin low-cost electrical space increasingly cramped.”
Such a change would reflect the pervasive feeling from the government of China, as cryptocurrencies have increasingly met with increasingly constricting regulation.
While the story is not yet confirmed, interested readers should stay tuned to Cointelegraph for continuing updates.
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Author: Jon Buck