Bitcoin

<p>China is doubling down on crypto mining operations with a revised plan for energy conservation. The new resolutions explicitly aim to curb cryptocurrency mining activities due to excessive electricity usage and environmental reasons. Beijing&#39;s updated anti-mining measures follow in the footsteps of similar recent developments in the <a href="https://coinpaper.com/3234/biden-s-administration-to-survey-crypto-miners-for-electricity-usage-over-energy-and-environmental-concerns" rel="noopener noreferrer nofollow">United States</a> and <a href="https://coinpaper.com/3213/european-commission-to-label-bitcoin-as-environmentally-harmful" rel="noopener noreferrer nofollow">European Union</a>, both targeting crypto mining in their legislation.</p><h2 id="header-0">Beijing is &#34;censoring virtual currency mining&#34;</h2><p>The <a href="https://www.beijing.gov.cn/zhengce/zhengcefagui/202402/t20240202_3554355.html" rel="noopener noreferrer nofollow">plan</a>, authored by twelve of Beijing&#39;s municipal departments, is currently limited to China&#39;s capital city but with clear ambitions to grow nationwide. In the paragraph titled straightforwardly &#34;Censoring virtual currency &#34;mining&#34; activities&#34; (as per Google&#39;s translation), the document lauds the ongoing &#34;rectification of &#34;mining&#34; activities&#34; and calls for implementing national requirements for &#34;cleaning up&#34; virtual currency mining activities &#34;in accordance with laws and regulations.&#34;</p><p>The paragraph doesn&#39;t detail specific measures against Bitcoin mining. However, energy conservation measures are spread all over the document with regard to various issues, such as controlling the turn-on time of street lights or indoor temperatures. Basically, it&#39;s about full-on monitoring and regulation – hardly surprising for China.</p><p>The opening paragraphs provide the ideological context for anti-mining and other energy-saving objectives, naming the key goal as implementing &#34;a comprehensive conservation strategy&#34; and &#34;actively and steadily&#34; promoting &#34;carbon neutrality&#34; – as decreed by the Communist Party and enforced by &#34;energy conservation officers.&#34;</p><h2 id="header-1">Is there a worldwide crackdown on Bitcoin mining?</h2><p>Beijing&#39;s initiative is a follow-up to the countrywide crackdown on crypto. In 2021, Chinese authorities issued a blanket ban on cryptocurrency transactions and mining after raising concerns that cryptocurrency speculation could disrupt the country&#39;s finances and economy. The new legislation sent the China-based Bitcoin mining market spiraling down from between 65% to 75% of the total network&#39;s &#34;hash rate&#34; to absolute lows. Still, the industry survived underground and quickly rebounded to over 20% of the global market. Most cryptocurrency mining operations were forced abroad.</p><p>It&#39;s worth noting, that from the <a href="https://www.nytimes.com/2022/02/25/climate/bitcoin-china-energy-pollution.html" rel="noopener noreferrer nofollow">environmental</a> perspective, the ban was an absolute disaster. Miners who enjoyed access to clean hydro power had to look for less eco-friendly energy sources, such as coal and gas, in Kazakhstan, Thailand, and the United States.</p><h2 id="header-2">Crypto miners are looking for safe havens. El Slavador may be a viable option</h2><p>With an uptick in legislation hitting crypto mining, the industry is looking at tough times ahead. Miners may have to look for safe havens outside the world&#39;s biggest economic powers. Welcoming destinations include El Salvador. Last year, the country <a href="https://www.reuters.com/technology/el-salvador-partnership-build-1-billion-bitcoin-mining-farm-2023-06-05" rel="noopener noreferrer nofollow">announced</a> a public-private partnership with an intention to pump $1 billion into creating one of the world&#39;s largest Bitcoin mining farms.</p>

Is Crypto Mining Under Global Attack? Beijing Joins EU and US in an Anti-Mining Offensive

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