Decrease in mining demand worries Chinese province

Large industrial complexes, including bitcoin mining, make up the majority of hydropower consumption in Sichuan, a Chinese province. With the rainy season set to start in the summer, local authorities fear that the closure of major mining operations could reduce demand for hydroelectric power. Some miners have already started to pack up the machines and move their operations elsewhere.

Sichuan regulators hold meeting

The recent national crackdown on cryptocurrency mining in China has raised questions about the sustainability of Bitcoin's current hash rate and has triggered a slowdown in the crypto market. , Xinjiang and other northern provinces, many blame the industry's massive energy consumption for the latest shift in sentiment. However, the latest news from Sichuan, China's province with the highest concentration of Bitcoin mining farms in the world, points to a much more optimistic result.Pizza Day FoxbitIn an online publication supported by the Chinese state, the Sichuan Energy Regulatory Office announced that it will hold a meeting in early June. According to the Global Times, the purpose of the meeting is to better understand the current status of cryptocurrency mining activities in the southwestern provinces. The meeting was allegedly requested by the National Energy Administration, which oversees all provincial regulators focusing on energy, including the Sichuan Energy Regulatory Office. The National Energy Administration reports to the National Development and Reform Commission (NDRC) and as such reports directly to the central government. Sichuan is the country's largest producer of hydroelectric power thanks to its natural geography and abundant rivers. The ideal conditions have made hydroelectric power harnessed in Sichuan one of the cheapest energy sources in the world, making it especially attractive to miners. Despite receiving financing as a renewable energy source, hydroelectric plants in Sichuan are not yet connected to the grid. greater provincial. As such, large industrial complexes make up the majority of Sichuan's hydropower consumers. With the rainy season set to start in the summer, local authorities are concerned that the closure of major mining operations could decrease demand for hydropower and cause the accumulation of large amounts of waste water.

Miner pressure

Some miners have already started to pack up and move their operations elsewhere.Source: Blockchain.comMclouds, a mining service platform, said it would transfer a portion of its mining machinery to Kazakhstan. Mclouds sources also reveal that a significant number of miners have already begun their move out of China, with North America being a popular choice. With less than a week to go, it's not just miners in China that are gearing up for impact. Other companies in the crypto industry have also begun taking steps to distance themselves from Chinese customers, awaiting greater regulatory scrutiny from the People's Bank of China (PBoC). Huobi, the world's second-largest cryptoactive exchange by volume, said in a statement on Sunday it suspended cryptoactive mining hosting services and the sale of crypto mining machines in China. Jiang Zhuoer, founder of BTC.TOP, says his company is also looking beyond China after Friday's announcement -fair. Writing in Weibo, Jiang said that mining operations – including his own – will eventually be moved to North America. He predicts that mining platforms produced in China will be sold mainly overseas in the long term. Crypto miner HashCow, owner of 10 mining projects in Chinese provinces such as Sichuan and Xinjiang, wrote in a note to the client that he will suspend new business in China. China and will stop buying new Bitcoin platforms, according to Reuters. Meanwhile, OKEx, one of the ten largest mining companies in the world, has limited its services to Chinese users, temporarily removing its 'OKB' token from its Peer-to-Peer platform, writes Decrypt. It remains to wait until July 2 to see if the companies will actually move all the machines or if they will have Sichuan's stamp to continue mining blocks in the Blockchain in Chinese territory.
Read More: China discusses crackdown on bitcoin mining, what are the consequences?

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