China’s Inner Mongolia will shut down cryptocurrency mining projects by April
A few days ago, the Development and Reform Commission of China’s Inner Mongolia issued a draft to control the scale of high energy-consuming industries, Bloomberg report on Monday. In the draft, Inner Mongolia clearly mentioned that cryptocurrency mining will be cleaned up.
The so-called virtual currency mining projects refer to cryptocurrency mining farms such as Bitcoin and Ethereum. These mining farms use high-performance chips for calculations that require power support.
Most mines have the highest electricity costs, so professional mines will choose areas with low electricity prices, which can reduce costs, maximize profits, and obtain a stable supply.
It is worth noting that the electricity consumed by cryptocurrency mining farms is extremely high. Data shows that Bitcoin mining consumes more electricity than the total electricity used in many countries.
In the consultation draft, the Inner Mongolia Development and Reform Commission mainly named high-energy-consuming industries, and Inner Mongolia plans to gradually or completely eliminate high-energy-consuming industries in subsequent economic development.
Among them, cryptocurrency mining farms are a very typical high-energy-consuming industry. Therefore, the Inner Mongolia Development and Reform Commission also called for the complete shutdown and clearance of cryptocurrency mining farms.
The specific timetable is to completely clean up and shut down cryptocurrency mining projects by the end of April 2021, which means that the crypto mining farms in Inner Mongolia will be completely stopped by the end of next month.
This may be a blow to professional mining farms, but it is expected that some provinces, municipalities, and autonomous regions have restricted cryptocurrency mining sites in the previous policy.