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Chinese officials ban using state energy for mining


Like mineral gold, mining the digital currency isn’t free. For hardcore miners, the bottom line is cheap electricity. That is what made Chinese province Sichuan a bitcoin mining capital one day.

The wave of prohibitive measures taken by Chinese government against cryptocurrency initiatives in the country has recently reached miners. Today, on the 14th of November, local newsmedia posted an article, which reveals that Sichuan governmental hydroelectric power company issued a decree, where it declares energy consumption for mining operations out of law. This decree orders all companies, using the power of governmental electric stations to stop their mining operations or they will face serious penalties.

Considering that around 70 percent of bitcoin’s global computational power is located in China, this new governmental ban may considerably change the global landscape of mining and have some effect on the cryptocurrency rates.


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