News published on PengPai, a Chinese state media as shared by a reporter, Wu Collins revealed that the Chinese national government would be getting involved in BTC Mining activities. Somehow, the view of the Chinese government to crypto is quite unexplainable but a recent report reveals that they’ve been getting involved in BTC particularly.
The state media of the country confirmed the flying rumor on the collection data center run by the Beijing government that is being used to facilitate the mining activities. The report noted that the data centers in the national capital were asked to deliver feedbacks to analyze the situation.
Based on the Economic and Information Bureau in Beijing, the major concerns are around the energy consumption that the mining activities would cause. The state media platform quotes the rotating Chairman of the Chinese Blockchain Special Committee, Yu Jianing that the environmental requirements could cause strict regulation of crypto mining in the country.
The attention of the Chinese authorities however is allegedly on this sector. As claimed by the state media, the mining process, and equipment needed to consume massive electricity for operation.
An investigation conducted by Tsinghua University and the Academy of Sciences of China, published in the National Communications claims that Bitcoin mining activities in the Chinese territory will peak at 296.59 TWh. As a result, the researchers are expecting about 130.5 million metric tons of carbon emissions to be generated.
Therefore, there is pressure on the country to increase the regulations around crypto mining. In the same research, however, it was revealed that about 75% of the total BTC hashrate is in China.
Many other sources debunk this data; “Alarm could be raised in the country. Though, the government claimed it was all an investigation. The data centers are quite difficult to use for BTC mining and are used mainly for Ethereum filecoin.”
Recovery of BTC Network After Sudden Outage of Energy in China
BTC mining hashrate took the hit after a blackout in the Xinjiang province of China. Mining activities however were stalled because of the local government security inspection.
Though there was a huge blow in the crypto industry, Wu Collins claimed that the measures took were not targeted at BTC mining but was a holistic safety study of the electrical system in North West, China.
Currently, BTC trades at $53,247 having consolidated for a while in the 1-hour timeframe but has a small drop on a higher timeframe. On the 30-day chart, however, there was about a 7.5% loss on Bitcoin.