China Wants to Limit the Amount of Electricity Spent on Mining 0 217

To begin with, the process of mining the cryptocurrency is very energy-consuming.

Now it became known that the Chinese authorities intend to settle the issue of using electricity by miners. Probably, it is about the industrial mining. It was made to gradually reduce the scale of the market.

In China Concentrates Lion’s Share of the Computing Power of the Bitcoin Network.

It is reported that the similar initiative comes from the People’s Bank of China. At the end of last year, the central bank of China in one of the meetings discussed this issue with members of the Beijing Group Leader on reducing financial risks on the Internet. The People’s Bank of China cannot directly regulate the use of electricity by cryptocurrency lenders. Nevertheless, it can apply with the appropriate assignment to local authorities in the regions.

It is assumed that this step is a consequence of a significant increase in the demand for electricity. The miners use too much of computing power for the cryptocurrency.

Note that the Chinese miners began to express concerns about possible restrictions. It happened immediately after the ban on ICO in the country and the subsequent closing of exchanges. We still remember how the market of the whole country reacted and what happened with the bitcoin rate after this decision. Now we can imagine what will happen if the Chinese authorities eventually introduce restrictions on the amount of energy spent on the production of cryptocurrency.

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