- Tram Ho
Sichuan is considered the last stronghold of Bitcoin miners, because it operates hydroelectric plants, which are considered an abundant source of clean energy during the rainy season for virtual currency miners.
However, on June 18, China officially asked power plants not to supply electricity to virtual currency mines in Sichuan and reported back before June 25.
Although there are still many small-capacity miners operating in Yunnan and Sichuan, the report shows that 26 large ones will be forced to close. This move caused Bitcoin mining capacity to drop by about 10%, with Ethereum at 7%.
Cryptocurrency mining pools are often built near hydroelectric dams to optimize electricity costs.
China’s decisive crackdown on Bitcoin mining has made some places a new destination for miners. Of these, Texas promises to be the world’s new Bitcoin factory, although construction costs are 6 times more expensive and electricity is 2 times more expensive than China.
Along with the announcement of cracking down on mining, virtual currency exchanges have stopped providing services to Chinese citizens to avoid arising trouble. After Bitfinex, it is the turn of BiKi exchange to say no to users in the mainland.
As for Alibaba Cloud, this provider said it would cancel the domain names and services of companies operating in the field of virtual currency.
The new move by China has severely shrunk the average profit of miners to $31 million/day from the peak of $68 million/day on May 10.
As of the morning of June 19, the Bitcoin price is currently around $35,000 with a market capitalization of $1.492 billion.
Source : Genk