Chinese Sichuan, encourages Bitcoin mining operations
The demand arises from the need to consume excessive hydropower
Ya’an Daily / Beiwei News recently published the document: “Implementation opinions on the construction of hydropower demonstration zones to support the development of the blockchain industry.
The document outlines strategic lines and opportunities for the development of the blockchain industry, promoting the industry through the use of hydropower resources of which the Chinese Sichuan region is particularly rich.
The “Implementation Opinions” make it clear that, based on Ya’an’s advantages in terms of element safety, industrial layout, location conditions, ecological climate, etc., we will vigorously implement precision investment, business investment and industry chain investment.
The construction of ecological companies capable of exploiting excess energy from hydroelectric power plants, specifically using the existing electricity distribution network as the primary energy supplier, is favoured.
“Blockchain companies should build factories near power plants that have excessive power and are integrated with the state grid,” says the guide.
According to a report by Coinshare, China continues to dominate the bitcoin mining industry, with 60% of all mining activities, with Sichuan alone producing 50% of global hashrate.
The approach of the Halving bitcoin and the uncertainties about how the impending halving will be dealt with, open up scenarios all to write about; and while Chinese miners control a significant part of the world’s hasrate, the government through facilitation seems to believe a Blockchain industry.
Will these miners be interested only in Bitcoin or could they be interested in the profitable and less expensive (Mining) altcoin market?
As reported by Bitmex, as a result of halving, a significant drop in Hashrate up to 35% would seem plausible read here, which could lead to a significant as possible decrease in Token value.
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Independent researcher and consultant, Tech Writer at Blockchain Technology. From Italy