2018-01-04 China Said To Plan Power Curbs For Some Bitcoin Miners

[entrepmind23]

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.

The People's Bank of China outlined the plan on Wednesday (Jan 3) at a closed-door meeting, according to the people, who asked not to be identified because it wasn't public. They didn't detail how authorities plan to enact the curbs.

Chinese officials are concerned that bitcoin miners are taking advantage of low power prices in some areas and affecting 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. Some Chinese miners have set up around hydroelectric facilities in the provinces of Sichuan and Yunnan.

The curbs will also involve other regulators such as the National Development and Reform Commission, which oversees the power supply. The PBOC didn't immediately respond to a fax requesting comment sent after the close of regular business hours.

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

Bitcoin, which surged 15-fold last year, pared gains on Wednesday and traded around US$15,086 on Thursday.

China is home to many of the world's largest bitcoin miners, who use massive computing power to verify transactions in the cryptocurrency. The global industry uses as much electricity as 3.4 million US homes, according to the Digiconomist Bitcoin Energy Consumption Index.

Beijing's scrutiny of miners follows a sweeping cryptocurrency crackdown last year. Authorities outlawed initial coin offerings in September and have called on local exchanges to halt virtual currency trading.

Source: http://www.straitstimes.com/business/companies-markets/china-said-to-plan-power-curbs-for-some-bitcoin-miners

[1715588412]

1715588412

[1715588412]

1715588412

[1715588412]

1715588412

[1715588412]

1715588412

[1715588412]

1715588412

[1715588412]

1715588412

[iamTom123]

Chinese really have a difficult to decipher kind of mindset. Why not just declare Bitcoin mining to be illegal in the country rather than make it difficult for operators to do their business? I know that there is now a migration away from China to other viable countries where they can do the business of mining without the government always looking for them like the Big Brother and if China will implement a phase-out plan then it would be much better for all of them and the mining entrepreneurs. Now it can be told that there is no bright future for Bitcoin mining in China and it is really about time that locators should find other places where they can conduct business legally and favorably. This is also posing a big challenge for developers to come up with much-better, much-efficient mining equipment requiring less power to operate as we don't like Bitcoin to be associated with partly contributing to environmental problems.

[Samarkand]

... The global industry uses as much electricity as 3.4 million US homes, according to the Digiconomist Bitcoin Energy Consumption Index.

...

This is literally nothing to worry about.

Electricity is wasted for stuff like trashy TV shows, the production
of consumer goods that aren´t really needed and so much other useless stuff. By contrast Bitcoin
is the world´s most secure settlement network. Why is it a problem when this network consumes
large amounts of energy? The world needs sound money and electricity usage is one of
the most unconvincing arguments against Bitcoin, because it is the very foundation
of the consensus algorithm that secures it all.

It´s called proof-of-work for a reason.

[darkangel11]

It's another proof that China isn't a capitalist country, it's not even a socialist one because it limits the access to services that are widely available in first world countries.
Imagine that you are running a large farm, growing plants on a massive scale and using a lot of water and suddenly your government comes up with an idea to limit your water usage because your company is too big. This would be unimaginable in a normal country since you're using a lot and paying a lot for it.

[J. Cooper]

... The global industry uses as much electricity as 3.4 million US homes, according to the Digiconomist Bitcoin Energy Consumption Index.

...

This is literally nothing to worry about.

Electricity is wasted for stuff like trashy TV shows, the production
of consumer goods that aren´t really needed and so much other useless stuff. By contrast Bitcoin
is the world´s most secure settlement network. Why is it a problem when this network consumes
large amounts of energy? The world needs sound money and electricity usage is one of
the most unconvincing arguments against Bitcoin, because it is the very foundation
of the consensus algorithm that secures it all.

It´s called proof-of-work for a reason.

That's the hypocritical thing. People in first world countries world are experts at wasting elektricity on all stupid kinds of things. But all of a sudden people complain about the elektricity usage of the world's most secure network. Sure bitcoin isn't good for the environment but shutting all the miners off certainly won't save the world, not to mention the technological loss for us as a species.