Chinese miners cut off electricity to save money
Chinese miners will be cut off from electricity
Earlier, the Chinese authorities have already tried to deprive miners of cheap electricity
Chinese officials block access to banking services for miners
International consortium of news organizations developing transparency standards.
Not politics, but economy
The leadership of the Chinese province of Yunnan decided to disconnect the regional mining farms from electricity. Reported by renowned Chinese reporter Colin Wu, citing local sources..
“Several miners informed Wu that on November 30, the Baoshan power plants in Yunnan province were ordered to cut off the power supply to miners,” Wu tweeted with a screen of the decree..
According to Wu, this incident should not be underestimated. Yunnan is the third most active cryptocurrency miner in China after Sichuan and Xinjiang, so the shutdown of mining farms could negatively affect the production of cryptocurrency.
“The attitude of local energy companies in China towards cryptocurrency mining often changes. This demand is dictated by economic interests rather than political pressure, “Wu wrote..
Chinese authorities are fighting miners
The Chinese authorities are not making their first attempt to cut off cheap electricity from miners. Cryptocurrency miners in the Inner Mongolia region have lost preferential electricity prices. Presumably, local authorities decided that it was not profitable for them, and therefore canceled subsidies for cryptocurrency companies.
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However, the official version is still unknown..
Colin Wu believes that the lack of subsidies could lead to an increase in electricity prices for miners by more than 33%.
Also, the authorities of the Celestial Empire closed access to banking services for miners. Chinese miners can’t pay for electricity because their accounts are blocked. According to Wu, 74% of miners surveyed said that blocking banking services significantly affected the performance of mining centers..
“Due to the government’s nationwide policy to block [bank] cards, crypto investors prefer not to exchange Chinese yuan. Nevertheless, miners have to pay for the electricity of mining farms by exchanging the mined BTC / ETH into yuan, “Wu wrote on his page..
Some mining centers contacted by Wu have already reported the suspension of activities for at least a month..
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