Bitcoin miners banned from electricity supply in China’s Yunnan

Amidst Bitcoin mining difficulty reaching ATH, Bitcoin miners in Yunnan are prohibited from receiving uninterrupted electricity supply.

By · Dec 2, 2020 . 6min read

Bitcoin miners Electricity supply ban in Yunnan news

Bitcoin miners from China’s Yunnan province are banned from receiving electricity supply. Yunnan province published an order to power stations for terminating power supply to Bitcoin (BTC) miners in the region. A recent report from the famous Chinese crypto reporter, Wu Blockchain, notified that the authorities in the Yunnan province of China had informed power companies to cease providing electricity to the Bitcoin miners in that region. 

Yunnan’s electricity ban to affect Bitcoin network hash rate

The authorities in Yunnan, banning bitcoin miners from receiving electricity supply have not provided any basis for the sudden ban. Nevertheless, the reporter states that it might have originated as a consequence of increased demand for economical interest. The news indicates the latest pessimistic move against miners in the Yunnan province. The development can have a severe influence on the BTC network hash rate, owing to a large number of crypto mining farms found in the region. The ban seems to have corresponded with a 24-hour drop-in global hash rate of approximately 10% from 140 exahashes per second to 125 EX/s.

For the uninformed, Yunnan is China’s fourth-largest Bitcoin mining hub. The three largest hubs are Xinjiang, Sichuan, and Inner Mongolia. Yunnan represents 5.42% of the global hash rate. Thus, placing it above all nations except for China, the United States, Russia, and Kazakhstan. China also faces break down on the crypto businesses as the People’s Bank of China readies to launch the national digital currency. 

China’s Bitcoin crackdown measures

Earlier in June, the local government also necessitated a shutdown of 64 facilities in the region. This was in accordance with functioning without the required approvals. Yunnan’s combat on Bitcoin miners proceeds, even though the region has a notoriety for electricity wastage. Notwithstanding, after separating mining from a list of unpopular industries over a year ago, Chinese Bitcoin miners proceed to fight with various issues.

Recently, we reported that Bitcoin mining difficulty is reaching its all-time high (ATH). Bitcoin’s network mining difficulty has increased by 8.9%. According to the on-chain crypto analytics firm Glassnode, BTC’s mining difficulty is now just 4.4% below its all-time high. However, the BTC mining difficulty reduces the efficiency of mining of new Bitcoin. Moreover, the required time for creating new blocks will roughly increase.

Follow Cryptodose for more updates.

         All News