China is not taking cryptocurrency lightly. As the decentralised currency becomes essential fit money launderers, the government is cracking down on its spread. As a result, the price of high profile crypto like bitcoin is dropping.
However, China’s crackdown on crypto includes a crackdown on crypto miners. In response, those dedicated to mining cryptocurrencies are going into hiding. Nevertheless, the government is spreading no expense to find them.
China hunts down crypto miners
In a report by Bloomberg, it’s said that illegal miners are disguising themselves as “data researchers and storage facilities”. In order to “stay in business”, Chinese miners have to continually change facilities to mine crypto.
To combat this, the authorities are routinely inspecting local colleges and data centres to find in-hiding miners. However, some miners are already looking into lesser-known tokens to stay in business.
Official businesses in Hebei have been instructed to completely avoid mining. Additionally, businesses are now being asked to complete “self-compliance” checks. This October, the government will have official measures to monitor crypto-like power draw.
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Why are they doing this?
China's current initiative to take down illegal crypto miners comes alongside massive energy concerns. One reason behind the crypto hunt is due to growing concerns over the country's power supplies for the winter season.
Mining cryptocurrency is insanely power hungry. With 46% of the world’s global hash rate being attributed to China in April, 2021, the country’s power draw is massive. A report by Digicomonist claims that a single bitcoin transaction uses roughly 707.6 kilowatt-hours of electrical energy. That's equivalent 24 days of energy in a typical U.S household.
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