Chinese government officials cut power to cryptocurrency mining operations on Monday morning, resulting to an immediate drop in price for the coin and related cryptocurrency. This is the latest in a line of similar targeted operations in China aimed at cutting down on mining operations throughout the country here in the year 2021. Officials suggested this year that cracking down on crypto mining is aimed at bringing the country closer to environmental goals as a significant amount of the energy used was (and continues to be) generated by coal power stations.
According to the Global Times, Southwest China’s Sichuan Province saw “many Bitcoin mines” closed on Sunday. It is estimated that 90% of China’s Bitcoin mining will be closed down in the short term. A notice was issued on Friday (the 18th of June, 2021), by the Sichuan Provincial Development and Reform Commission and the Sichuan Energy Bureau which suggested that local power companies should “screen, clean up, and terminate” crypto mining operations by the end of the weekend.
Shentu Qingchun, CEO of blockchain company BankLedger in Shenzhen, spoke with the Global Times this weekend. Per Shentu Qingchun, rules announced by Chinese government regulators in recent weeks mean “more than 90 percent of Bitcoin mining capacity, or one-third of the global crypto network’s processing power, will be suspended in the short term.”
Shentu Qingchun went on to note that Chinese miners “must form alliances to migrate overseas, to places such as North America and Russia.”
Bitcoin VS USD price over the past 24 hours is currently down approximately 4.1%, according to Coinbase. The same source suggets Bitcoin VS USD price is down 18.61% over the past week. Ethereum VS USD is down approximately 4.33% over the past 24 hours, and down 22% over the past week. Dogecoin is down around 15% over the past 24 hours, and down 31% over the past week.