Some China mining fud or news that
might affect the difficulty
Exclusive: China's Inner Mongolia suddenly issued a policy on the 24th, requiring the cancellation of preferential electricity prices for the crypto mining, which will increase the overall electricity price by about 1/3. Miners are worried about Xinjiang will follow.
A google translate of the Weixin article referenced in his follow-up tweet (so neither company gets the clicks!)
[quote]Wu said that the blockchain was exclusively informed that on the 24th, the Inner Mongolia Department of Industry and Information Technology issued the "Notice on Matters Related to Mining Enterprises' Participation in Inner Mongolia Electric Power Multilateral Trading Market" to Inner Mongolia Electric Power (Group) Co., Ltd.
The notice stated that at the end of 2019, on-site inspections of 30 big data and cloud computing companies in 7 leagues and cities were carried out, and 21 mining companies were found, and the qualifications for participating in the listing of characteristic industries were suspended. After verification for companies that no longer conduct mining Perform recovery.
According to the notice, in accordance with the requirements of the state and autonomous region on guiding enterprises to withdraw from the "mining" business, in order to effectively support the sustainable and healthy development of cloud computing and big data industries in our region, and to further regulate power market transactions, please publish the list of enterprises.
The 21 companies include most of the large mines well known in the industry, and the rest are mainly normal IDC companies. But there are also some mining companies that are not on the list. The requirements of this notice are more detailed, and industry professionals worry that it is different from the past and the implementation will not be hastily ended.
In 2006, the Inner Mongolia Power Exchange Center was established. In May 2010, the Inner Mongolia Electric Power Multilateral Trading Market was officially put into operation, becoming my country's first officially operated provincial power market. As of October 2019, the number of power market members has reached 1,820, and the cumulative cost of electricity consumption has been reduced by 30.01 billion yuan. The multilateral trading market allows related power generation, power supply and electricity users to determine electricity prices in a more flexible way, which is different from the national unified pricing.
For mines, after participating in multilateral transactions, the electricity fee is 2-3 gross per kWh (mainstream is 2.6 gross). If you cannot participate in multilateral transactions, some people guess that the normal electricity cost is 3.847 gross, and there are also speculations that large industrial electricity charges are 0.47 gross. . This means that electricity charges for mines in Inner Mongolia may rise by 1/3.
In July, Inner Mongolia ended its two-and-a-half-month on-site inspection by the coal-related corruption inspection team. Inner Mongolia Electric Power (Group) Co., Ltd. is also a company that routinely inspects. The inspection team concluded that: “It urges relevant departments to recover 6.732 billion yuan in taxes and fees and 4.836 billion yuan in proceeds from mining rights.”
At present, we cannot know why the verification information at the end of 19th happened suddenly on August 24, nor can it be judged whether this is a short-term behavior or will continue to be strictly enforced. As the mining industry is in a policy fuzzy zone, changes in wind direction occur from time to time.
On November 11 last year, the Department of Industry and Information Technology of the Inner Mongolia Autonomous Region issued the "Notice on the Joint Inspection of the Clean-up and Rectification of Virtual Currency "Mining" Enterprises", requiring the focus on finding out that it has nothing to do with the real economy, avoids supervision, and consumes more energy. This inspection is carried out with the purpose of "big data industry" as a package of virtual currency "mining" companies that enjoy preferential policies on local electricity prices, land and taxes. The list of companies announced this time is suspected to be the result of this round of inspections in November last year.
The verification in November last year was a follow-up to the "Notice on Inspection and Reorganization of Virtual Currency "Mining" Enterprises" issued on August 30 a year ago. The notice emphasized the implementation of the "National Financial Work Conference and the National Internet Financial Risk Special Rectification Working Group Symposium and the relevant instructions of the leaders of the autonomous region", and required the clean-up and orderly exit of virtual currency "mining" enterprises in the region.
For the mining industry this year, there are some variables in the policy. Sichuan is advocating the consumption of mines in the demonstration area, but at the same time and Yunnan are cracking down on the traditional direct power supply. Inner Mongolia's current crackdown policy has caused concerns from all walks of life about the upcoming dry season, especially in Xinjiang. Whether it will be affected, the policy will be emulated. At present, the power load of the mines in Inner Mongolia is lower than that of Sichuan and Xinjiang.
At the central policy level, on January 2, 2018, the Internet Financial Risk Special Rectification Office Work Leading Group issued an internal document requesting all localities to guide enterprises within their jurisdiction to exit the "mining" business in an orderly manner, and regularly report work progress. The document refers to the mining industry wasting resources and fueling virtual currency hype. The 2019 National Development and Reform Commission’s draft of the industrial structure adjustment guidance catalogue once listed cryptocurrency mining as an obsolete industry, but this entry was deleted in the body of the announcement on November 6. The Energy Bureau is under the jurisdiction of the National Development and Reform Commission. It is reported that insiders have studied the use of mining to dissipate water and electricity.
On April 29 this year, the Sichuan Provincial Financial Work Leading Group Office issued the "Notice on Guiding Enterprises to Exit Virtual Currency "Mining" Activities in an Orderly Way", emphasizing that the policy guidance of various ministries and commissions on virtual currency "mining" activities is highly consistent and guide The job requirements for quitting have not changed.
But overall, there are some trends in the compliance of the cryptocurrency industry. Sun Guofeng, Director of the Monetary Policy Department of the Central Bank, revealed that the issue of regulating the 1CO regulations was discussed in the last revision of the Securities Law. The Supreme Law and the National Development and Reform Commission also emphasized once again, "Do our best to maintain the operational value of corporate property. Strengthen the protection of new rights and interests such as digital currency, network virtual property, and data." The industry generally expects that encryption mining can also make progress in compliance.[/quote]
The electricity pricing is of course also in Chinese yuan/RMB. edit see next 2 posts
As if that wasn't hard enough to follow, or to work out the scale of any changes, a couple of days later-
Breaking: On the 26th, the former boss of the Inner Mongolia Electric Power Company was investigated by the CCP. Three days ago, Wu exclusively disclosed that Inner Mongolia had suspended the preferential electricity prices of 21 large Bitcoin mining farms.
There are many large bitcoin mines in Inner Mongolia, including those of almost all mining machine manufacturers in China. It will resulting in electricity tariffs rising by one-third or more.
Since Bitcoin mining cannot be relied upon in China, it has to rely on local officials and breed a lot of corruption. The investigation and punishment of corruption in the power system in Inner Mongolia may have some negative effects on Bitcoin mining.
(some nice pics of bleak Southern Mongolia, oh sorry "Inner Mongolia", in that thread)
So something or nothing as so often in this game. But the CCP still gradually pushing mining out of China?
Meanwhile in USA government sponsored mining shenanigans (although the ghastly Peter Thiel only really peripherally
financially involved)
https://twitter.com/btcking555/status/1297967628657537024https://www.theblockcrypto.com/daily/75873/bitcoin-miner-layer1-pitch-deckhttps://www.coindesk.com/peter-theil-dcg-backed-btc-mining-firm-layer1-accused-of-patent-infringementbasically lying about the nm size of their tapeout to raise money for mines in Texas, with Thiel blahing on about needing mining in the USA because 'national security'.