Mining pools shut down in China with no clear reasons

[Doofus]

Sichuan, a mountainous areas in China, is home to many btc mining sites.And now it's in wet season, But mining pools there suddenly shut down, including Bajiaoxi, a mining pool with 6,000 machines that obtain 27 btcs per day. Bitcoin workers are not willing to reveal any details. And local government say they never release any documents asking them to close down. As the bid three resumes btc withdrawl, how come mining pools left for no reason?
http://news.8btc.com/bitcoin-mining-pools-in-sichuan-shut-down-is-this-a-bellwether-for-state-policy

[franky1]

4.5 million kwh/month and pay us more than 1 million yuan per month

thats $0.033 per kwh.... not cheap i guess they decided to go up north and stay up north more long term instead of seasonal


might also be that exactly a month after them leaving the southern location
southern chinese state electric grid raised the price of non-residential electric
http://www.ebeijing.gov.cn/BeijingInformation/BeijingNewsUpdate/t1094426.htm

China's National Development and Reform Commission (NDRC), the top economic planning agency, Thursday announced a rise in the price of electricity for non-residential use by 2.8 fen ($0.4 cents) per kWh on average nationwide, as of Friday.

and for commercial use 79 fen per kWh, according to Beijing Electric Power Corporation.

.. might help explain it.. coal in the south isnt as cheap as hydro electric in the north


also mongolia is having big growth and able to offer special discounts,.. as another possible layer as to why they would had north sooner

[OROBTC]

...

That's brand new and interesting news to me, what with China being so dominant in Bitcoin mining.

Maybe it's some kind of local issue (I did not read your link), but if it is a "trial balloon" by the Chinese government to maybe shut down or restrict BTC mining or commerce, that is huge news.

Please let is know of any other developments.  Great scoop.



EDIT: Just saw franky1's comment, maybe that explains it.

[Doofus]

4.5 million kwh/month and pay us more than 1 million yuan per month


thats $0.033 per kwh.... not cheap i guess they decided to go up north and stay up north more long term instead of seasonal

Sichuan is now in wet season and the electricity price will only cost 50% of that of in dry season.

[franky1]

4.5 million kwh/month and pay us more than 1 million yuan per month


thats $0.033 per kwh.... not cheap i guess they decided to go up north and stay up north more long term instead of seasonal

Sichuan is now in wet season and the electricity price will only cost 50% of that of in dry season.

i added more to my previous post which might add extra depth to the argument against staying in the south..
but hey im just googling..

[Kakmakr]

I think they might have some issues with wet coal in the wet season too, because most of these coal are stored in the open and in the dry season the coal is dry and more efficient. Wet coal being less efficient will increase electricity prices in the wet season, so these miners might be going north to operate in an environment where there are no seasonal influences in the electricity prices.

It is all about efficiency, because cheaper electricity = more profits. ^smile^

[dunfida]

I think they might have some issues with wet coal in the wet season too, because most of these coal are stored in the open and in the dry season the coal is dry and more efficient. Wet coal being less efficient will increase electricity prices in the wet season, so these miners might be going north to operate in an environment where there are no seasonal influences in the electricity prices.

It is all about efficiency, because cheaper electricity = more profits. ^smile^

Its just a common sense to think off on a certain company or group on this way.As long on where the business would be profitable they will surely make changes later on. They shut because they saw that they aren't making money and would need to move to another place.

[Doofus]

I think they might have some issues with wet coal in the wet season too, because most of these coal are stored in the open and in the dry season the coal is dry and more efficient. Wet coal being less efficient will increase electricity prices in the wet season, so these miners might be going north to operate in an environment where there are no seasonal influences in the electricity prices.

It is all about efficiency, because cheaper electricity = more profits. ^smile^

Its just a common sense to think off on a certain company or group on this way.As long on where the business would be profitable they will surely make changes later on. They shut because they saw that they aren't making money and would need to move to another place.

then how come they refuse to be interviewed and say they expect regulations on mining pools? The timing is just so weird.

[talkbitcoin]

I think they might have some issues with wet coal in the wet season too, because most of these coal are stored in the open and in the dry season the coal is dry and more efficient. Wet coal being less efficient will increase electricity prices in the wet season, so these miners might be going north to operate in an environment where there are no seasonal influences in the electricity prices.

It is all about efficiency, because cheaper electricity = more profits. ^smile^

Its just a common sense to think off on a certain company or group on this way.As long on where the business would be profitable they will surely make changes later on. They shut because they saw that they aren't making money and would need to move to another place.

then how come they refuse to be interviewed and say they expect regulations on mining pools? The timing is just so weird.

because it is none of anybody's business why they stopped, it is their own business that they can start and stop at any time for any reasons. they don't have to explain to anyone about the "why" of it

and you are making a far fetched assumption about regulation on mining and even if it happens, it is just going to force them to pay taxes which they may already be paying anyways!

[franky1]

the other thing can be
fake company never making bitcoin. pretends its moved away to set up elsewhere, while publishing numbers of income vs expense in the hopes of grabbing VC money under the pretence they are already established yet only just setting up in the north

[Hydrogen]

The segwit 2MB scaling agreement could have something to do with this.

It is possible miners based out of china were funded by central banks & their only motivation was to support bitcoin unlimited in an attempt to centralized bitcoin.

Once the segwit agreement was reached, there was no longer a reason for them to mine as their window and opportunity to centralize bitcoin and fork ended.

Of course this is all vaporware conspiracy theories. Still, its not easy to explain how miners in china shutdown for no reason.