Crypto

Why did the Chinese government start mining Bitcoin (BTC)

Journalist Colin Wu shared information published by the Chinese state media PengPai about the country’s government’s bitcoin mining activities. At least China’s attitude towards cryptocurrencies is ambiguous, but according to the report, they touched BTC.

State media have confirmed rumors that the Beijing government’s data center is being used in BTC mining activities. The report said data centers in the Chinese capital were asked for comments to “resolve the situation.”

According to the Beijing Economic and Information Bureau, these activities have raised concerns about energy consumption. PengPai quoted Yu Jianying, the alternate chairman of China’s blockchain ad hoc committee, as saying the country’s environmental requirements could lead to more “tightly regulated” cryptocurrency mining. Jianning said it would be “inevitable.”

The Chinese authorities are “paying more attention” to the sector. State media claim that mining bitcoins and the necessary equipment “requires a lot of electricity to operate.”

A poll published in Nature Communications by the Chinese Academy of Sciences and Tsinghua University claims that China’s BTC mining will peak at 296.59 TWh. As a result, the researchers expected 130.5 million metric tons of carbon emissions to be generated.

Consequently, the pressure in the country to adopt cryptocurrency mining regulations could increase. However, the same study claims that 75% of BTC’s hashrate is located in China. This data is disputed by many external sources. Woo 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 outage in China

A power outage in China’s Xinjiang province has impacted Bitcoin’s hashrate. Mining operations have been halted due to security checks carried out by local authorities.

While this crypto sector was affected, Wu said the measures were not aimed at mining BTC, but were part of a study on the “comprehensive security” of the power grid in northwest China. Data provided by OKLink and published by a reporter shows that Bitcoin’s hash rate has recovered.

Source: Colin Wu

On the way to the levels seen before the outages when the hash was 172 TH / s. At the moment it is 154 TH / s. As a result, the Bitcoin network faced a high level of congestion, with transaction fees skyrocketing to an average of 150 SAT / WB (around $ 11).

BTC is trading at $ 53,247 with sideways movement on the hourly chart and small losses over longer time frames. On the 30-day chart, the BTC loss is 7.5%.

Bitcoin BTC BTCUSD
BTC is moving sideways on the daily chart. Source: BTCUSD Tradingview


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