[2017-06-12] Bitcoin Mines in Chinese Province Sichuan Allegedly Forced to...

cr1776

legendary

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Merit: 1313

Quote from: IconFirm on June 12, 2017, 05:37:15 AM

If this article is true (which I doubt), then this is great news for all miners & Bitcoin itself - difficulty will decrease & the network will become less centralised.

Win win for all.

Agreed. If true, the impact on decentralization would be a big positive. There doesn't yet appear to be a huge drop in hash rate (above the noise).

IconFirm

hero member

Activity: 1438

Merit: 574

Always ask questions. #StandWithHongKong

If this article is true (which I doubt), then this is great news for all miners & Bitcoin itself - difficulty will decrease & the network will become less centralised.

Win win for all.

Netnox

legendary

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This is a foolish step from the Chinese government. If they create issues for the miners, then they will just move to some of the neighboring nations, such as Mongolia and South Korea. In the end, the government will end up losing the valuable tax revenues. I am not sure whether the issue is specific to the province of Sichuan, or if the issues persist at national level.

Terraformer

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Reports have emerged detailing the alleged forceful cessation of large-scale bitcoin mines in China’s southwest, with insiders quoting a lack of state-sanctioned regulatory policy regarding cryptocurrency mining as the official reasoning cited for such.

The Closures Come at a Critical Moment for Mining Businesses, as Bitcoin’s Price Has Tripled over the Course of 2017

The absence of government-backed regulation over the practice of bitcoin mining has apparently prompted the Chinese central government to forcefully influence the cessation of many commercial bitcoin mining operations in Sichuan.

China’s province of Sichuan has attracted great interest from bitcoin investors and entrepreneurs in recent years, as the province has abundant access to hydropower and offers huge savings in electricity costs for mining businesses that operate in Sichuan.

The closures come at a critical moment for mining businesses, as Bitcoin’s price has tripled over the course of 2017. “The price is so high at the moment,” said a bitcoin mine manager in an interview with Yicai Global, “shutting down costs mine owners hundreds of thousands of yuan every day.”

The reports appear at odds with the Chinese government’s recent to decision to again allow deposits and withdrawals in fiat currencies to be processed by the country’s major exchanges. The moves come ahead of announcements that The People’s Bank of China will roll out regulatory measures for bitcoin trading designed to prevent money laundering in June.

https://news.bitcoin.com/bitcoin-mines-in-chinese-province-sichuan-allegedly-forced-to-shut-down/

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