Reporter Colin Wu shared the news of the national government’s bitcoin mining activities published by Chinese state media PengPai. At least China’s view of cryptocurrencies isn’t clear, but according to the report, they’ve dabbed themselves with BTC.
State media confirmed a rumor about the Beijing government’s collection data center being used for BTC mining activities. The report said data centers in China’s capital were asked to provide feedback to “sort out the situation.”
According to the Beijing Economic and Information Bureau, there have been concerns about energy consumption related to these activities. PengPai cited Yu Jianing, the rotating chairman of China’s Blockchain Special Committee, to claim that the country’s environmental requirements could lead to crypto mining being “more strictly regulated”. Jianing said it was “inevitable”.
The Chinese authorities “are reportedly paying more attention to the sector”. The state media claims that bitcoin mining and equipment “uses a lot of electricity to run”.
Research published in Nature Communications, conducted by the Chinese Academy of Sciences and Tsinghua University, predicts that BTC mining activities in China will peak at 296.59 TWh. As a result, the researchers expected 130.5 million tons of carbon emissions.
Therefore, the pressure in the country to pass a crypto mining regulation could increase. However, the same research says that 75% of BTC hashrate is in China. These data have been challenged by many outside sources. Wu added:
This caused some panic in China. However, the Chinese government said it was only conducting an investigation. Data centers are difficult to use for Bitcoin mining and are mainly used for ETH Filecoin.
Bitcoin network recovers after power outages in China
Power outages in China’s Xinjiang Province took a toll on Bitcoin’s hashrate. Mining has stopped due to safety inspections by the local government.
Although this crypto sector was affected, Wu said the measures were not aimed at mining BTC but were part of a study on the “overall security” of the electrical system in northwest China. Data provided by OKLink and shared by the reporter shows that Bitcoin’s hashrate has recovered.
On the way to pre-failure levels when the hashrate was 172 TH / s. It is currently at 154 TH / s.As a result, the Bitcoin network has been heavily congested and transaction fees have increased towards an average of 150 sat / vB (around $ 11).
BTC is trading at USD 53,247 with sideways moves on the 1-hour chart and little losses on higher time periods. In the 30-day chart, BTC is down 7.5%.