Leaked documents related to the state of Bitcoin mining in China have arisen, and it will be grim for the future outlook of the business.
At this time, China accounts for 2/3 of the mining power supplied to Bitcoin. However, the intention to phase out mining farms is being discussed in Beijing, with enforcement at the local level being proposed.
China's top internet-finance regulator, the Leading Group of Internet Financial Risks Remediation, issued the notice stating a desire for local level governments to “guide” bitcoin-mining operations to make an “orderly exit” from Bitcoin mining operations in China.
Here's a post from @cryptovenus referencing the January 4th document in question:
This comes on the heels of news out of Bloomberg and Reuters that power being supplied to these operations would meet limitations; the limitations would be placed placed on them by authorities under new regulations at many levels.
The electricity to power these farms is supplied cheaply and has helping in part to give rise to the massive operations that exist in China as of now. An exit of so much processing power will surely have unexpected consequences to the Bitcoin blockchain and could destabilize the coin or the markets tied so strongly to its wellbeing.
Industry advocates don't believe the government can enfore such a ban due to many local governments receiving high tax revenue from operations in their jurisdiction. However, progress of the exit is being requested by January 10th, as well as the following 10th of each month.
Time will tell on this one. We must watch and see what's in store next for Bitcoin mining.
One thing is for certain, Bitcoin has seen many things happen and has continued on with not but a few stumbles that have pushed us to the high values Bitcoin now commands on exchanges across the world.
Bloomberg has confirmed the CCP's intentions to move the country away diverting cheap power to Bitcoin mining farms, however, the document has yet to be officially comfirmed, but several news publications have presented similiar reports on the document.
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