The first step was taken in China, where it was recently announced that drastic measures will be taken against cryptocurrency mining. Bitcoin miners in the China Xinjiang region have been instructed to immediately cease their operations.
The Reform and Development Commission in the Changji Hui Autonomous Region in Xinjiang sent a statement to sub-government officials in the Zhundong Economic-Technological Development Zone today. In the instructions given to the authorities; have been asked to cease all cryptocurrency mining activities under their administration until 2 noon today.
It was also stated that the order was based on the Bitcoin and cryptocurrency mining decision taken at the Chinese State Council meeting last month.
Xinjiang Almost Coal Center
In this area of 15,500 square kilometers, there are several coal production centers, including many coal-powered power grids and industrial factories. The area is also home to some of the largest Bitcoin mining facilities in the country due to its high fossil fuel energy capacity.
Experts, on the other hand, state that this order for the Xinjiang region will have a greater impact than the Inner Mongolia region halting the work. As is known, the Inner Mongolia region produces fossil fuel-based energy like Xinjiang, but the scale of Xinjiang is much larger. After the last mining difficulty adjustment on May 29, Bitcoin’s total 7-day average computing power had increased to 150 exahash per second (EH/s).
Bitcoin Seen as the Reason for Increasing Coal Demand
Last month, in China, at the State Council meeting led by vice-president Liu He, it was decided to take drastic measures against Bitcoin mining. After the statements made by Liu He at the end of the meeting, there was a sharp decline in Bitcoin.
According to Bloomberg’s report, the biggest reason why Chinese state officials took this decision was that Bitcoin was behind the increase in coal demand in the country. The first region to take action after the announcement was Inner Mongolia, one of China’s coal-powered regions.
What does Will happen After the Closure of Bitcoin Miners in Xinjiang, China?
It is still unclear how to approach this issue in Xinjiang, one of the country’s most important mining regions. In the region, which stands out with its hydroelectric energy, energy companies executives and miners met with state officials, but no sanctions or measures were announced on the subject.
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