Bitcoin, banned from mining in a region of China: here’s why
March 3, 2021 – 3:39 pm
Bitcoin mining could be banned in one region of China due to too high energy consumption that does not meet the standards set by Beijing.
A region of China, that of Inner Mongolia, plans to ban new Bitcoin mining projects and to close existing activities at the moment with the aim of reducing energy consumption.
In fact, it is now known that the extraction process of the most famous cryptocurrency is currently unsustainable, as it consumes about 128.84 terawatt-hours, a much higher amount of energy than that of some states, such as Ukraine and Argentina. Should the decision become official, it could represent an obstacle for the cryptocurrency, as the Inner Mongolia Autonomous Region alone accounts for around 8% of all Bitcoin mining globally, even higher than the United States. they reach 7.2%.
Bitcoin, mining banned in one region of China
The Autonomous Region of Inner Mongolia plans to ban all new Bitcoin mining projects and to close existing ones at the moment, with the aim of reducing energy consumption. This cryptocurrency is in fact based on a particular decentralized network and therefore is not issued by a single reality, such as a central bank, but by multiple users. All transactions made through Bitcoin must be “verified” by Miners, this translates into the activity of a huge amount of computers, specially built, which aim to verify transactions.
The University of Cambridge has estimated that Bitcoin mining consumes about 128.84 terawatt-hours of energy per year, much more than that consumed by Argentina. At the moment, China mines about 65% of all Bitcoin in the world, while the Autonomous Region of Inner Mongolia 8% thanks to its very low energy costs.
China’s green policies
The decision of the Autonomous Region of Inner Mongolia would be dictated by the fact that in 2019 the region did not meet the evaluation objectives of the central government regarding the use of energy, and for this reason it is now trying to implement policies to run for cover.
The intention of the Autonomous Region of Inner Mongolia is to close all projects concerning the extraction of cryptocurrency by April 2021 and not to approve new ones. The Dragon’s goal, in fact, as President Xi Jinping declared last year, is to reduce carbon dioxide emissions by 2030 and to achieve carbon neutrality by the year 2060.