Chinese government cuts power supply to mining farms in Yunnan
The current Bitcoin events should make the heart of every crypto enthusiast beat faster. However, recent media reports from China could dampen this positive mood somewhat. Local sources report that the authorities in Baoshan want to completely shut down the power supply to the local miners.
On 30 November, the Chinese crypto reporter Colin Wu commented on the current situation via Twitter. According to him, the Chinese government had issued a ban stating that it Bitcoin Up would cut off power to mining farms in Yunnan. Wu believes that this is more a matter of „economic interests“ than a general ban on crypto-mining:
The impact of this incident should not be overestimated. The attitude of local energy suppliers towards crypto-mining is changing frequently. It is more a demand out of economic interest than political pressure.
China supplies 65 % of the (attributable) global Bitcoin hash rate. If this figure is extrapolated to the Yunnan, it turns out that 5.42 percent comes from that region. This makes Yunnan the fourth largest mining region in China.
Not the first mining conflict in China
The news comes after Chinese miners complained last month that they can no longer pay their electricity bills. In June 2020, Wu also reported that the Yunnan government closed down 64 mining farms after they were suspected of tax evasion. Seven of the closed mining farms had not even been completed.
Despite the current incidents, China still holds the global leadership position in terms of hash rate. However, this could change soon. Due to the government’s harsh approach, local miners are giving more and more shares to other countries. The coming months will show whether this will continue to be the case in the future and whether China will remain the global leader.