By Marko Vidrih on The Capital
Shortly before bitcoin halving, there is good news from China. The Chinese city of Yaan has a surplus of electricity that is now apparently more cheaply ceded to bitcoin miners with government permission. It is crucial that Yaan accounts for almost half of the hash power in the Bitcoin Network.
Mining supported by Chinese local government. Yaan, a city in Sichuan, known for abundant water resources, recently issued a gov advice on construction of hydropower consumption demonstration zone to support blockchain industry development. Source (in CN): https://t.co/jdjLHPKBNF
The mining companies were apparently asked to set up their branches near the power plants in order to benefit directly from the surplus. It is not yet clear whether this is a permanent reduction in energy costs, but China is clearly preparing for the Bitcoin Halving.
Yaan is located in the Sichuan region and is considered the worldwide hotspot of bitcoin mining. Approximately half of the hash power comes from mining in this area.
And with that, many Chinese miners’ concerns were dispelled that a bitcoin price of under $7,000 could no longer make mining profitable after the halving — electricity costs make up about 90 percent of mining costs.
Author: Marko Vidrih
Featured image credit: Pixabay