Banned Bitcoin Miners Found Exploding Chinese State Resources

Banned bitcoin miners have been found using Chinese state resources to continue their operations. It comes amid a severe power shortage and the country’s relentless attempt to shut down all BTC mines.

The recent coal crisis in China sparked their interest in speeding up the shutdown of all Bitcoin mining operations. According to a recent report published on Bloomberg, authorities in Zhejiang and Jiangso provinces investigated Bitcoin mining operations that used state-owned resources. As reported:

Jiangsu found that about one-fifth of some 4,500 Internet Protocol addresses associated with illegal mining activities belonged to public institutions, according to The Paper, (…) Some 260,000 kilowatt-hours of electricity were used per day,

The authorities allowed us to locate them by tracing their IP address using data from the mining pool associated with the accounts of electricity companies.

Related reading | China Can’t Regulate Virtual Worlds – The Benefits of Decentralized Metaverse

China’s race to cut carbon dioxide emissions

Among the reasons cited by China for rejecting Bitcoin mining are the risks of fraudulent transactions and the alleged impact of Bitcoin’s energy consumption on the environment.

While this is a relevant concern, raiding and cracking down on an entire industry rather than solutions could bring even more problems. Chinese lands are shaking in many ways, and this report is about how the people are dealing with the crisis.

The Chinese government has been working on an ambitious plan to reduce carbon emissions until they reach carbon neutrality, which has found a big hurdle during the current electricity shortage crisis as they depend on coal to produce Energy.

The impact of the ban on the Chinese people

China’s Bitcoin mining industry was the largest BTC production in the world, accounting for an estimated 65% to 75% of bitcoin mining globally. That was until the government banned all related activities.

Their ban represented a victory for the U.S. Bitcoin mining industry and a moment of desperation for the Chinese people who depended on it.

Related reading | How the United States took the lead in mining Bitcoin from China

The shutdown of such an important industry not only impacted the number of carbon dioxide emissions, but also weighed on an important human factor that depended on mining operations. It is widely reported that many Chinese Bitcoin miners are migrating to the United States and countries where they can find cheap electricity and softer laws.

As Stein Smith said a few months ago in Euronews:

Blockchain-based applications including, but not limited to crypto assets, provide quantifiable benefits and savings to all network members; seeking to prevent this maturation would only harm consumers. Suppressing and attempting to integrate these entirely new models into existing frameworks sounds appealing, and may even work in the short term, but will ultimately fail to contain or reduce the dynamism that this industry continues to show.

New promises can be found in the United States, where states like Texas aim to promote mining. The question arises as to whether some Chinese crypto miners will find other ways to do business in China.

At the time of going to press, Bitcoin is trading at $ 61,824 with a sideways move in the 24 hour chart.

BTC moves sideways in the daily chart. Source: BTCUSD Tradingview

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