Trapped Miners Have Access to Electricity for Underground Illumination As Rescue Continues

Contents

Chinese miners will be denied access to cheap electricity

Chinese miners will be denied access to cheap electricity
CONTENT

  • One of the market giants suffered from restrictions – AntPool

  • The tightening may spread to other regions of China

  • Due to the unprofitable business, miners can start flooding the market with Bitcoin supply

International consortium of news organizations, developing transparency standards.

Restrictions are imposed due to lack of economic benefits for the wider regions of Inner Mongolia

Cryptocurrency Miners in Inner Mongolia, China, No Longer Receive Subsidized Electricity Prices.

This is reported by the local newspaper Weixin, referring to the order of the authorities.

For a long period of time, the cryptocurrency mining industry has been actively growing in the region due to the cool climate, as well as cheap electricity..

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Mining centers located in this region, including AntPool, have more than half of the total hashing rate of the bitcoin blockchain and generate hundreds of millions of dollars in revenue each year.. 

Although no official reason was given, Weixin speculates that the decision to cut off access to subsidized prices is due to a lack of benefit for local authorities..

Forced surrender

Local reporter Colin Wu believes the lack of subsidies could result in more than 33% higher electricity prices for miners.

The mining community is already concerned that the restrictions will extend to Xinjiang, the nearby mountainous region of China..

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At least 21 mining businesses were affected by the restrictions.

If cryptocurrency miners cannot reach a consensus on paying for electricity, then in the medium term, such tightening may lead to the fact that miners will no longer hold the mined cryptocurrency until better times and will more actively sell bitcoin on the market, which in turn will lead to a drop in the price of the asset.

New harbor for miners

Limitations for the Chinese cryptocurrency mining market occur against the backdrop of reaching a historical maximum in the difficulty of mining bitcoin.

On Monday, August 24, Bitcoin’s Mining Difficulty Index set a new high at 17.55 trillion hashes.

At the same time, the American mining market begins to confidently increase its position in the international arena.

The American company Marathon previously announced the purchase of 10,500 Antminer S-19 Pro ASIC Miners for over $ 18 million.

On moment of writing bitcoin price is $ 11 444.

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Chinese miners will be denied access to cheap electricity

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Chinese miners will be denied access to cheap electricity

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