Bitcoin mining in northern Chinese province to be halted amid energy-saving push
- Bitcoin mining requires huge amounts of computing power and uses large amounts of energy, but China has pledged to achieve carbon neutrality in 2060
- Inner Mongolia was the only one of 30 areas under Beijing’s energy consumption and energy intensity review that failed to meet the targets in 2019
China’s top energy consuming province plans to suspend all new and existing bitcoin mining projects before the end of April, as Inner Mongolia faces mounting pressure to meet its energy-saving targets.
Bitcoin mining requires huge amounts of computing power and uses large amounts of energy, with operations attracted to areas like Inner Mongolia, Sichuan and Xinjiang due to low electricity prices.
But Inner Mongolia was the only one of 30 areas under Beijing’s energy consumption and energy intensity review that failed to meet the targets in 2019, drawing criticism from the central government in September.
The plan, released last week by Inner Mongolia’s industry and energy departments, is subject to changes as the agencies are still soliciting public opinion until Wednesday,
But it is widely believed to be a routine procedure ahead of the official announcement, which is highly likely to be implemented given the country’s commitment to fighting pollution and reducing its carbon emissions.
The efforts to curb all high energy-consuming industries will certainly pour cold water over the rising enthusiasm for bitcoin miners, which have been spurred by soaring prices, with the cryptocurrency currently trading at over US$47,000, compared to over US$8,500 a year ago.