In the dark. In China, the world’s fourth largest mining hub has just seen its electricity supply cut. Did this have an influence on Bitcoin’s hashrate (BTC)? And what could this say for Chinese mining?
China cuts power to Yunnan mining farms
The news was reported yesterday by several local media. It seems that the government has decided to stop providing electricity to mining farms , according to information from Wu Blockchain:
“Several miners explained to Wu that in Baoshan, Yunnan, where Financial Peak mines are located, a ban was put in place on November 30. She asks power stations to stop providing energy to the miners. Yunnan is China’s third largest mining hub, after Sichuan and Xinjiang. “
As the local media point out, this power cut should not necessarily be interpreted as a comprehensive policy on the part of China. The government changes its attitude regularly with regard to electricity suppliers. Wu Blockchain explains that this is a change driven by economic interests , not political pressure.
Bitcoin’s hashrate on the decline
Still, the average hashrate of the Bitcoin network fell yesterday, if CoinWarz data is to be believed. However, it seems that it has already started to rise again:
The news is certainly not entirely surprising: the province of Yunnan has already shown some hostility towards Bitcoin miners settled in the region. In June, 64 mining farms had to close their doors because they did not have the government’s sesame. However, it is still the 4th largest mining hub in the world, behind Inner Mongolia.
Hostility from the Yunnan government does not yet threaten China’s mining hegemony – the country still holds 65% of Bitcoin’s hashrate . But the difficulties experienced by local miners could allow new regions to emerge in the years to come.