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China has recently taken a step back from its crypto-friendly policies and introduced some restrictions in the region. The country leadership has made it clear that it wishes to achieve its carbon footprint reduction goals and cracked down on the cryptocurrency mining rigs. Before the crackdown, Chinese Bitcoin mining rigs made up for 60% of the total Bitcoin supply mined in the whole world.
However, some of the largest Bitcoin miners in the region have gone out of commission. Chinese authorities also decided to fish out the illegal mining operations going on underground. One unregistered miner was using the illegal coal mine for powering their plant. As noted by the CGTC, Bitcoin miners in China have become more motivated to find renewable energy sources.
Chinese Miners Want to Collaborate with the Local Power Generation Authorities to Help Reduce the Waste of Energy Units
It has been said that Bitcoin mines can recycle the wasted energy units that are produced extra. Otherwise, these extra rigs would go out of commission. It should be noted that the Proof of Work or PoW consensus model that is used to confirm transactions on the Bitcoin blockchain ledger requires a humongous amount of power supply. For every new cryptic puzzle, the computing units need to conduct hundreds of puzzles every second.
The power source is used to cool down, operate, and provide support to these machines. Such a system was first imagined when the computer was first invented. Arthur Lee is the CEO of a Bitcoin mining company SAI. He told the media that many miners are looking for a renewable energy source to get back into the business. However, it has been noticed that some miners want to get in touch with the local power generation companies to utilize the excess electricity units.
Crypto Miners are Coming with Wild Ideas for Producing more Power for their Mining Farms like Volcano and Cow Dung
The president of El Salvador Nayib Bukele shocked the world by claiming that his country would power Bitcoin mines with Volcano energy. Some other mining businesses have developed methods to use products like Cow dung to generate green energy for their crypto farms. According to Professor Liu Changyong from Chongqing University, Bitcoin miners have helped the economy by creating jobs, offering tax options, and assisted China to battle poverty.
A blanket ban is not fair to an industry that has done so much. Meanwhile, Arthur Lee from SAI claims that Bitcoin miners were able to grow exponentially in the region due to easy access to land, cheap electricity, small labor costs, and security. As China is moving away from Bitcoin mining industry other nations like Texas, Serbia, and central Asian nations are coming forward to fill the gap.