Why the Chinese Government Started Mining Bitcoin (BTC)

Reporter Colin Wu shared news published by China’s state media PengPai regarding Bitcoin mining activities by the national government. China’s view of cryptocurrencies is ambiguous to say the least, but they’ve dabbed with BTC, according to the report.

The state media confirmed a rumor about the Beijing government data center used for BTC mining operations. According to the report, data centers in China’s capital were asked to provide feedback to “resolve the situation.”

According to the Beijing Economic and Information Bureau, there were concerns about energy consumption associated with these activities. PengPai quotes Yu Jianing, rotating chairman of China’s Blockchain Special Committee, as saying that the country’s environmental requirements could lead to crypto mining becoming “more strictly regulated.” Jianing said this will be “inevitable.”

The Chinese authorities are reportedly “paying more attention” to the sector. The state media claims that Bitcoin mining and the necessary equipment “consume a lot of electricity”.

A study published in Nature Communications conducted by the Chinese Academy of Sciences and Tsinghua University claims that BTC mining activities in China will peak at 296.59 TWh. As a result, the researchers expected 130.5 million tons of carbon emissions to be generated.

Therefore, the pressure in the country to pass a crypto mining regulation could increase. However, according to the same study, 75% of the BTC hashrate is in China. This data has been disputed by many external sources. Wu added:

This caused some panic in China. However, the Chinese government said it was only conducting an investigation. Data centers are difficult to use for Bitcoin mining and are mainly used for ETH Filecoin.

Bitcoin’s network is recovering after power cuts in China

Blackouts in China’s Xinjiang province took their toll on Bitcoin’s hashrate. Mining operations were halted due to safety inspections by the local government.

While this crypto sector was affected, Wu said the measures did not target BTC mining, but were part of an “overall security” study of northwest China’s electrical system. Data provided by OKLink and shared by the reporter shows that Bitcoin’s hashrate has been restored.

Source: Colin Wu

Heading to pre-failure levels when the hashrate was 172 TH / s. It currently stands at 154 TH / s. As a result, Bitcoin’s network has faced high levels of congestion with transaction fees skyrocketing to an average of 150 sat / vB (about $ 11).

BTC is trading at $ 53,247 with sideways movement in the 1-hour chart and small losses in higher timeframes. In the 30-day chart, BTC has a loss of 7.5%.

BTC is moving sideways on the daily chart. Source: BTCUSD Tradingview

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