[China plans] to limit power use by some bitcoin miners, China to Curb Power Supply for Some Bitcoin Miners!!

Chinese officials are concerned that bitcoin miners have taken advantage of low power prices in some areas and affected normal electricity use in some cases, the people said. Local officials have been asked to investigate the high consumption associated with the industry, they said. The curbs will also involve other regulators such as the National Development and Reform Commission, which oversees the power supply.

“This may have contributed to bitcoin coming off its daily highs,” said Craig Erlam, senior market analyst at online trading firm Oanda in London. “Electricity usage certainly appears to be a significant challenge for the cryptocurrency in the years ahead.”

The PBOC didn’t immediately respond to a fax requesting comment sent after the close of regular business hours. A report circulated on social media Wednesday that China had asked bitcoin miners to shut is untrue, Caixin magazine reported, citing an “authoritative person.” The PBOC didn’t hold an internal meeting on Wednesday, Caixin added, without naming its source.

China plans to limit power use by some bitcoin miners, people familiar with the matter said, a potential challenge to an industry whose energy-intensive computer networks enable transactions in the cryptocurrency.