This could be the beginning of the end of China’s dominance in bitcoin mining
From Quartz
Having shut down the exchanges where cryptocurrencies like bitcoin are traded, the Chinese government is now going after the facilities where such currencies are “mined.” To do so, it’s hitting such operations where it hurts: electricity supply.Read more: https://qz.com/1172632/chinas-dominance-in-bitcoin-mining-under-threat-as-regulators-hit-where-it-hurts-electricity/Fresh reports have emerged about a crackdown—though not an outright ban—on bitcoin mining operations in China. Bloomberg reported Wednesday (Jan. 3) that the nation’s central bank has outlined plans to curb the power supply to some bitcoin miners, citing unnamed sources. Reuters noted that the bank intends to tell local governments to regulate miners’ power usage to “gradually reduce the scale of their production.” Chinese business magazine Caixin, meanwhile, reported that (paywall) authorities will no longer offer mining companies preferential benefits such as discounted electricity and tax deductions.
The crackdown could well put an end to China’s dominance in bitcoin mining.
As a mining hobbyist living in a place with expensive electricity I'm happy to hear the playing field is going to be leveled a bit. The mining space is experiencing a rebirth right now with newer ASIC resistant algorithms making GPU mining quite profitable. If you are thinking about building your own GPU mining rig, I can tell you from experience to get on it right now! Prices and selection on the best motherboards and GPU's are moving quickly. Just last week newegg raised their prices and began limiting customers to only 1 of any high end GPU where previously they had allowed 2.
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The only issue with Chinese government is that people love crypto, it’s like taking toy from the baby. Eventually the majority, the people will win.
I am not so sure about that. What will the people do if electricity is cut-off or facilities shut down? What if there is no avenue to convert the hard earned coins to fiat currency?
Hi @contentjunkie. Electricty costs & access to solid mining equipment are always issues facing miners. Havinga more of a fairer playing field is awesome. It will crazy to see if more and more corporations will get into the mining scene. Thank you for sharing.
This is great
@contentjunkie great post hope the playing field gets leveled for ya bro
Would be incredible if we could further decentralize the mining side of the equation. I've been interested in mining for a while ever since I flashback to trying and failing to mine LTC in 2013...
If only...
~ Kevin
I also like the move away from big-money groups. I also like that some coins are employing Proof of Stake so anyone can benefit as long as they hodl!
Love to hear some good news, competition is good for the market, and I do admit, I've been a little jealous of their subsidized electricity bills until now.
The miner won't give up so fast. They gonna find a way to overcome it.
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i think steemit can be an issue about it...
Because it is too easy to mine and earn than bitcoin.....