Recently, the news has mostly revolved around China and the increasing extent to which the country wants to ban bitcoin mining from the country. Province after province faces draconian measures when it comes to mining bitcoin.
This has major consequences for bitcoin. For example, the hashrate, the computing power of the Bitcoin network, decreased enormously. It should also be noted that more and more mining pools are leaving China to establish themselves elsewhere.
Also the 5th largest mining pool in the world, BTC.com. This mining pool recently announced that they have now partly moved to Kazakhstan.
BTC.com was founded by Jihan Wu and grew into one of the largest mining organizations in the world. No less than 10.4% of all bitcoin blocks are mined by this mining pool.
No more BTC electricity
The company was recently told by the local government in China’s Sichuan province that they would be out of power to continue bitcoin mining operations in the very near future. As a result, the company was forced to pack their things and move.
China has been planning to drastically reduce carbon emissions for some time now. Bitcoin mining costs a lot of energy and for that reason the Chinese government denounces such activities within the borders.
More reasons than just the climate?
Colin Wu, a famous Chinese crypto analyst, said that indeed the climate would be the main motivation for the drastic measures against bitcoin mining by the Chinese government.
However, his followers on Twitter disagreed with this statement. According to many, the main reason behind the actions by the Chinese government is not purely reducing CO2 emissions, but gaining more control over Chinese citizens is said to be the main reason.
China obviously gives citizens few freedoms. Freedoms that are taken for granted in Western countries. Cryptocurrencies and their decentralized nature can be seen as a threat by the Chinese government. For this reason, there are rumors that there is more going on than just bitcoin energy consumption and climate change.