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Should China open doors to Green-mining?

Should China open doors to Green-mining

Nasdaq-listed Bitcoin miners are urging China to open doors for green mining. The Chief Executive Officer of Canaan Inc called for a less indiscriminate mining ban in China.


Canaan Inc


Canaan Inc is a Nasdaq-listed China-based firm that specializes in bitcoin mining equipment. During a conference call on Tuesday, the firm argued that China’s Bitcoin mining Ban should make allowances for green energy users.


Zhang Nangeng


According to Zhang Nangeng, the indiscriminate ban on Bitcoin mining failed to consider the potential economic benefits that could arise from embracing green energy mining.


Oversupply

Zhang also stated that mining could solve the oversupply of electricity in some areas of the country where resultant low energy prices are already attracting miners.


Preference

In addition, he said that for-profit miners would prefer regions with low electricity prices. Moreover, that indicates oversupply and likely energy waste. He also added that Bitcoin miners also help create jobs in impoverished areas and contribute to fiscal coffers.


Quarterly Report

Nangeng wrote in the quarterly report that their financial performance improved significantly in the quarter driven by the Bitcoin price rally. He also added that the company’s revenue grew 490% year on year, primarily from its ASIC mining equipment sale.


Hard to predict


According to the report, the company recognizes that the trends in Bitcoin prices are currently hard to predict. Moreover, they cannot provide financial guidance due to Bitcoin price volatility in late May this year.

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