Carbon emission causes hawk-like supervision in China
Bitcoin mining causes carbon emissions and in light of this effect, the Chinese government put down its eyes to better manage this emission by crypto miners.
There was an "Emergency notice" to make regular checks on the data centers that mine Bitcoin and altcoins sent by Beijing on the 27th of April and this cause some worry in China.
Chinese journalist Colin Wu a regular writer on these sort of topics popularly known as Wu Blockchain on Twitter responded in anxiety as soon as this happened addressing his fear of the effect on Bitcoin miners saying that:
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.
PengPai, a Chinese state media stated in a translated note in Cointelegraph that the "emergency notice" that was done was what the Beijing Municipal Bureau of Economica and Technology usually does, trying to understand energy usage from these miners in Beijing.
The media house has not let anyone know if this will be a nationwide survey or what the consequence of this survey will be. PengPai did say that the current chairman of the Blockchain Committee of the China Communications Industry Association, Yu Jianing thinks it is only a matter of time before it goes national. He thinks that Carbon monitoring is only a guise to further tighten their watch in crypto mining supervision.
All this talk holds water especially when you think about all that happened in Inner Mongolia with the mining hubs. They gave crypto miners a deadline to shut down by the end of April when China placed a ban on crypto mining in the province to meet up with their target in carbon emission
There is a five-year plan for China to reduce its CO2 emission by 18% and a 13.5% reduction in energy intensity between 2021 and 2025.
Because of the cost of electricity in Beijing, other regions have been called the crypto mining hubs. places like Xinjiang and Sichuan with cheaper electricity will become targets in the future.
CBEI or Cambridge Bitcoin Energy Consumption Index has it that Xinjiang makes up 35% of China's Bitcoin hashing in the month of April and made up about 23% of the world's hashing rate.
If these strict regulations are put into effect it will affect the global world of crypto, an evidence of this was seen in BTC's crash in Aril as a result of Xinjiang's drop in hash rate as a result of power blackouts on April 17th.
Well-known crypto analyst Willy Woo said that a whale who was knowledgeable about what was going on in China sold 9000 bitcoins to Binance before the power outage on the 16th of April.
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