A Chinese city known as Ya’an is asking all its bitcoin and crypto miners to use up all its excess hydropower.
Ya’an: Use Up Our Water!
Ya’an is known as being one of the biggest bitcoin mining hubs in the country of China. It has recently put out a notice telling all crypto miners that there is a surplus of hydroelectrical power, and it wants to see it used up before the summer, which is typically a very rainy season for those living in the area. The rain will provide more water to be utilized for electricity purposes.
Adding what’s available now will cause reserves to build up like nobody’s business, and the city doesn’t know what to do with all the water supplies it’s likely to house. Using it to mine new cryptocurrencies seems like a good idea, however.
China has always been a major bitcoin haven. The country is home to both Bitmain and Canaan Creative, two of the largest crypto mining firms in the world, though strangely, the region has had a very up-and-down relationship with both mining and those looking to extract new blocks of coins. For example, regulators have often gone back and forth about whether bitcoin and crypto mining should be deemed illegal, given that it allegedly does wide harm to the environment.
After several months of debating this, legislators eventually decided against banning the practice, feeling that the harm it did wasn’t enough to hurt the atmosphere. One could easily argue they didn’t want to miss out on the tax revenues accumulated by both Canaan and Bitmain, but then again, that would be pure speculation.
With the upcoming bitcoin halving scheduled for this coming May, many bitcoin miners are worried that their business will no longer be profitable. After all, their digital rewards are about to be cut in half. From there, they’re likely to learn a lot less while still having to pay excessive energy bills in order to sustain their operations.
However, regions of China – such as Sichuan – are now offering cheaper electricity alternatives to ensure bitcoin miners get what they need to stay in business while paying less to keep their machines running. Will it work? We’ll have to see… There are still about two more weeks to go before the halving occurs.
What Miners Should Think To Do
Ya’an city guidance has put out a notice to all miners which reads:
On principle, blockchain companies should construct factories near power plants that have excessive power and are integrated with the State Grid. For blockchain companies that use electricity privately generated from power plants [without integration to the State Grid] should be rectified in due time.
It is estimated that the city of Ya’an accounts for more than 50 percent of China’s overall bitcoin mining activity.