- China is expanding its Bitcoin mining ban to more provinces
- Qinghai and Xinjiang are the latest provinces to ban Bitcoin mining
- The ban has caused Bitcoin’s hash rate to fall drastically
Miners in Qinghai reported that they were ordered not to start any new mining projects while all existing mining projects have been stopped. In addition, the province will investigate and punish illegal miners posing as data centers. Qinghai authorities also intend to monitor the situation to ensure continued compliance.
Also, miners in Xinjiang’s Zhundong Economic-Technological Development Park were forced to stop mining. The ban has already caused the BTC hash rate to drop drastically.
The Xinjiang news is huge. Xinjiang is the largest mining location in China during dry season. Rack space in Sichuan and overseas is in insane demand. Wondering if Sichuan miners will be able to wait until end of wet season to move or will be required to stop operations earlier. pic.twitter.com/AT3d13e8yc
— Thomas Heller (@thomasheller_) June 9, 2021
Of note, Xinjiang is a popular mining destination during dry months. As such, the ban in the province has caused the demand for racks in Sichuan and overseas to surge.
Prior to this, two Bitcoin mining companies blocked mainland Chinese miners. The two mining groups block mainland IP addresses from accessing their websites in compliance with updated Chinese regulations.
The tighter regulations are a result of renewed calls to ban Bitcoin mining in the Asian country. Specifically, late in May, China’s Financial Stability and Development Committee started pushing for Chinese provinces to comply with the country’s 2060 carbon neutrality goals.
Meanwhile, El Salvador, the first country to accept Bitcoin as legal tender, is exploring Bitcoin mining using renewable energy. El Salvador President Nayib Bukele is specifically looking at geothermal energy from volcanos.
I will pay 2x the market price of bitcoin for a bitcoin mined from a volcano
— ∞ CO฿IE (@CryptoCobain) June 9, 2021
The Crypto Twitter community is excited about the prospect. One user @CryptoCobain claims he will gladly pay double the market price for Bitcoin mined from a volcano.