Chinese officials seem to have failed in their efforts to reduce Crypto currency mineralization. According to a report from the National Business diary, there was a significant increase in electricity consumed by crypto money mining from January to September.
Crypto money mining sector is increasing day by day
China’s electricity consumption rose by September this year. The local people’s demand for the developing service sector, including the bitcoin mining industry, has grown. In a press release issued Wednesday by the National Energy Administration, electricity consumption has increased, which is considered an important economic indicator.
China used electricity up to 516.1 billion kWh during the period. While the tertiary industry and residential electricity consumption maintained a relatively high growth rate, the energy consumption of data center and Bitcoin mining doubled. China is currently controlling more than 70 percent of Bitcoin’s mining power. Monopolization of the mixed power used to adopt the world’s most popular crypto currency also increases the country’s energy consumption. Because bitcoin mining requires an intensive energy process in solving complex mathematical problems to add new operations to the Blockchain network.
China forbids mining companies
Most of China’s bitcoin mining pools are located in areas rich in coal or hydropower, including Xinjiang, central Mongolia, Sichuan and Yunnan. In these selected locations, electricity costs are below the national average. However, the eye-catching energy consumption of bitcoin mining attracts Chinese regulators.
The Internet Financial Risks improvement group, the country’s largest internet finance regulator, has instructed local governments to “actively direct” mining companies in their respective regions. However, the initiative has very little impact. Local governments, led by economic incentives, welcome large mining companies operating in their regions. This helps explain rising electricity consumption from bitcoin mining in China. However, Beijing’s hostility to crypto money, and unlike the Québec province of Canada and Iceland’s crypto money cheap electricity and friendly behavior, some of the major mining pools in China are forcing.