Another blow to the cryptocurrency market in China, now this province has banned mining

NDTV Gadgets 360 Hindi

East China’s Anhui province has become the latest province to announce a broad ban on cryptocurrency mining. Explaining the reason for the ban, it has been said that the move will help in reducing the acute power shortage in the next three years. According to a news portal run by state-owned Hefei Media Group, Anhui will shut down all cryptocurrency mining projects aimed at reducing electricity consumption, as the province faces a “severe” power supply shortage.

China’s state council, or cabinet, vowed in late May to crack down on bitcoin mining and trading, citing inherent financial risks. Bitcoin price in India was Rs 24.1 lakh as of 5:30 PM IST on July 14. Major Chinese mining centers including Sichuan, Inner Mongolia and Xinjiang have implemented elaborate measures to root out the trade. Before the clamp-down, China accounted for about 70 percent of global bitcoin production.

The cryptocurrency mining business consumes a lot of electricity. Miners use specially designed, high-powered computers or rigs to solve complex math puzzles, creating a new virtual currency like bitcoin.

According to the article Anhui’s electricity demand will increase to 73.14 million kW in 2024. While the current supply of the province is only 48.4 million kW, which points to a relatively large gap. In addition to rooting out cryptocurrency mining, Anhui will also promote reforms in electricity pricing to guide more economic use of electricity.

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