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The mining electricity bill has been attracting the attention of regulators worldwide.

The mining electricity bill has been attracting the attention of regulators worldwide.
Ethereum Miners (Courtesy: Twitter)

Beijing is investigating Crypto mining farms to improve its energy efficiency. According to a Reuters report, authorities in Beijing are reportedly conducting several inspections on Crypto mining data centers to understand the impact of energy consumption better.

The Municipal Bureau of Economic and Information Technology, Beijing has sent an emergency notice to all the city’s data center operators. The Bureau want the centers to report if their involvement in mining Bitcoin or other cryptocurrencies.

This notice needs all the data centers to report the amount of power consumed due to Crypto mining. A bureau official said that the notice recipients also include China’s top 3 Telecom operators. However, officials do not know the reason behind this initiative.

Moreover, the officials are not aware whether it is a part of a Nationwide campaign. This news comes amid a recovering Bitcoin hash rate. Bitcoin experienced a significant drop in mid-April because of massive power outages in the Chinese mining hub off Xinjiang.

However, after tumbling to the lowest 106 million terahashes per second on April 17, the Bitcoin hash rate rebounded to nearing 166 million TH/s on April 28.

Cryptocurrency mining energy consumption

The cryptocurrency mining energy consumption is getting more attention from the regulators in recent months. A former government official argued yesterday that Crypto mining had been a significant driver of the energy crisis in Kyrgyzstan.

The authorities of inner Mongolia, a Chinese autonomous region, proposed to shut down all the Crypto mining facilities by the end of April to reduce energy consumption.

Bitcoin mining

Mining Bitcoins need specialized computers which get connected to the cryptocurrency network. They need to verify transactions that people make to send or receive Bitcoins. Thus the process involves solving puzzles that may not be an integral part of ascertaining moments of the currency.

However, this verification process is a hurdle to ensure that no one fraudulently edits Global records of the transactions. Bitcoin miners often receive a small amount as a reward which is like a lottery.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.