Bitcoin Magazine, which recently successfully invited Trump to attend a conference, is becoming more and more arrogant. Yesterday, its official Twitter account designated the cover article of the new issue as "China has never banned Bitcoin mining."
According to Cambridge data, the mainland’s computing power was indeed “cleared” for only about a month in 2021:
But just a few months later, about half of the computing power was restored.
As of today, China's computing power ranks second in the world, second only to the United States:
The official ban was issued on September 24, 2021:
The original text of the handling principle of this ban is:
“Distinguish between incremental and existing virtual currency “mining” projects. It is strictly forbidden to invest in incremental projects, and it is forbidden to develop virtual currency “mining” projects under any name; accelerate the orderly exit of existing projects, and scientifically determine the exit timetable and implementation path based on the actual situation in various places while ensuring a smooth transition.”
Therefore, the main conclusions of this article are:
The 94 document does not impose a legislative ban, but rather suspends the establishment of new mines and clears out mining facilities that are contrary to the "carbon neutrality" goal.
There is still large-scale mining activity in mainland China.
Currently, the mainland mining industry mainly relies on renewable energy such as heat recovery. Hydropower is cheap in Xi'an, Wuhan, Beijing and Xining, and some mining industries may exist.
As the economy tanks, the government has invited bitcoin miners to fill gaps in excess electricity supply to prevent renewable energy from being wasted.
In order to develop the economy, local governments have specially issued some "mining licenses" to allow miners to purchase electricity from the government. In return, the government obtains the right to use the recovered heat energy free of charge for people's livelihood.
The article details the example of Inner Mongolia, where a mining dealer confirmed: "With the downturn in China's economy, some heavy industries have left Inner Mongolia and Xinjiang provinces. As a result, electricity supply is often in oversupply."
But just a few months later, about half of the computing power was restored.
And now China's mining has come up with new tricks:
For example, a 13 MW mining farm buys electricity from the government, and in return the government gets the right to use their recovered heat for free.
Because 95% of the energy in the Bitcoin mining process will eventually be converted into heat, which is almost like a huge heating boiler.
The government then provides water for heating the fish farms.
