Local authorities in the Chinese province of Sichuan, known as the world capital of bitcoin mining, held a seminar to encourage cryptocurrency mining operations in the region. It is reported by 8btc.
Officials believe that the mining business will help consume excess hydroelectric power and offset economic losses due to coronavirus.
At a seminar, authorities in the Gardze-Tibet Autonomous Region, located in the west of the province, said they would accelerate the construction of the park for consumers of hydropower. It will allow businesses to take full advantage of the benefits of the local territory, they believe.
Excess electricity, especially during the rainy season from May to September, and the cool climate have turned the region into an attractive place to host mining farms. According to CoinShares, at the end of 2019, 54% of Bitcoin hash was located in Sichuan.
In April, authorities in the city of Ya’an in the region invited participants in the blockchain industry to help spend the surplus of hydropower.
Last fall, Yang Jiang, former vice president of the China Securities Regulatory Commission, said Sichuan has every chance of becoming even more attractive to miners.
But in winter, the authorities of the Gardze-Tibet Autonomous Region, worried about the lack of electricity, put pressure on the miners to reduce consumption.
The Chinese publication writes that before the current rainy season, a paradoxical situation is observed – on mining farms there is an unusually large supply of free slots for equipment.
Experts predicted that after halving, some ASIC miners that provide a significant share of the network hashrate will become unprofitable and the owners will disconnect them from the network.
Immediately after the May 11 halving, the computing power of the Bitcoin network decreased by 16%, then continued to fall by another 13%, despite the price increase.
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