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Cyber Bitcoin
Edited by qqqpeter at 2019-11-4 21:02

Blocktempo.com reported that Chairman of China, Xi Jinping's continued fermentation, this time will point to the mining activities closely related to the development of the blockchain. As China, which has tried to block the mining industry, it seems that it is still inseparable from the miners responsible for maintaining the normal operation of the blockchain ecology. Between the power control and the control of the Chinese government, how should we master the huge market of mining?

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Image from China.org.cn

Jiang Yang, the former vice-chairman of the China Securities Regulatory Commission (CSRC), said at the Sichuan High-Quality Development Decision Consultation Conference held in Beijing on the 27th Oct that Sichuan Province should continue to provide low-cost utilities to attract, for blockchain or digital currency. The development provides the greatest strength of support.

According to the Sichuan Daily, Jiang Yang pointed out at the meeting that Sichuan Province, as the world's largest producer of bitcoin, should further study how to attract blockchain or cryptocurrency-related enterprises with low-cost electricity bills in order to respond to China. Leader Xi Jinping announced his determination to promote the blockchain on the 24th Oct.

Sichuan Electric Power

In terms of data, nearly 70% of Bitcoin is produced by China, India ranks second with only 4%, and third America has only 1%. The gap is not difficult to see that China's mining status is very important. The difference is mainly due to Sichuan being China's largest hydropower province, and it also caused the cost of reducing the most headaches for miners.

According to statistics, Sichuan hydropower produced up to 78.2 gigawatts last year, know that 1 billion watts of electricity can sustain electricity for 830,000 Chinese households for one year, while Sichuan went to the field last year. It exported 10 billion kilowatts of electricity.

Unfortunately, the design of the dam facilities is technically constrained, resulting in a large amount of water loss during the rainy season of nearly 4 or 5 months. As in mid-August this year, Aba Prefecture was washed by heavy rain, causing landslides and landslides. Major disasters such as the dammed lakes, local electric power services, and the loss of nearly 1 million yuan in local mines.

In addition, the equipment of some hydroelectric power plants is not complete, and the power cannot be properly deployed.

It is conceivable that if the infrastructure is complete, Sichuan Province can create electricity that is beyond the reach of the world, and if it can successfully introduce more miners, it will help to absorb those surpluses before the power allocation has not received appropriate technical support. The production capacity will boost the local economic development in Sichuan.

According to the South China Morning Post, Sichuan’s electricity bills fell during the rainy season. The minimum can be reduced to about 0.6 Taiwan dollars per kilowatt exaggeration. Far less than about 3.3 Taiwan dollars in Guangzhou or Beijing. Even in the normal month, the electricity bill per kilowatt is only about 1.2 Taiwan dollars.

For the mining industry, which accounts for nearly 90% of the cost of electricity, such a low price is undoubtedly the most important attraction.

Paradox

In addition to power development, Jiang Yang also asked the participating officials to study the breakthrough of the blockchain in financial applications.

Jiang Yang said that the application of blockchain technology in the financial field has always been opened through cryptocurrency, and the entire cryptocurrency market is mainly driven by Bitcoin as a promoter.

However, China's development policy never intends to be related to cryptocurrency in the market.

Since 2018, China has successively announced that Xinjiang, Yunnan, Guizhou, and other places have been ordered to withdraw from the mining industry. In early April this year, the National Development and Reform Commission (NDRC) of the People’s Republic of China also slammed the mining industry. It is said that the industry should be classified as a phase-out category. The government spokesman announced in October that the Inner Mongolia Autonomous Region must also remove all illegal mining operations.

In addition, China has implemented a comprehensive cryptocurrency ban since 2017, in addition to strictly prohibiting cryptocurrency trading platforms or exchanges, suppressing multiple blockchain media, and stifling any activity that promotes cryptocurrency in the business premises.

However, Xi Jinping’s recent speech has been unintentionally contributing to the rise of cryptocurrency.

Coincidentally, the People’s Bank of China has continuously released digital renminbi (DCEP) news in the past few months. Although the project leader, Mu Changchun, said that the sovereign digital currency does not necessarily rely on the blockchain, and it is not uncommon to associate the outside world with The international central bank's digital currency (CBDC) has also been fierce.

Although Jiang Yang’s statement seems to be somewhat different from China’s development policy, we can still expect that this statement will inspire the miners’ intention to enter.
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