China Would Like to Slow Down Bitcoin Mining Due to Environmental Impact
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Three-quarters of the world's digital currency supply is still produced in the country. However, the large energy consumption associated with bitcoin mining will run counter to the country's sustainable ambitions. According to the American business newspaper The Wall Street Journal, miners are increasingly moving to the West.
Bitcoin works on the basis of blockchain technology, a kind of collective log in which all participants track all transactions together. This registry is updated every 10 minutes with a new "page" with the latest changes. To safely handle each addition, it is necessary to solve a complex mathematical formula. All over the world, special computer systems puzzle him all day. This puzzle is necessary to finally come to the most energy-consuming moment: the production (or mining) of bitcoin.
Beijing's threat shows that the production of a digital currency that is beyond the reach of governments is a vulnerability. Mining depends on sufficient supplies of cheap electricity and equipment. It was these elements that China used to become the world's largest manufacturing country.
China as a whole is experiencing difficulties with cryptocurrencies. For many years, legal bitcoin exchange was not allowed in China, even when the country's entrepreneurs became the main producers. The country has already made its first plans in 2018 to limit the mining of cryptocurrencies. In particular, the Inner Mongolia region is popular, where energy is cheap. The autonomous region has previously announced that it wants to limit mining.
Earlier, Iran announced that it would temporarily not allow bitcoin mining. With the help of the ban, Iran wants to prevent a shortage of electricity in the summer. Iran accounts for 4.5 percent of bitcoin production worldwide.
The impact of the bitcoin cryptocurrency on the environment was highlighted earlier last month by Tesla owner Elon Musk. His company initially accepted bitcoin as a means of payment, but this was canceled in mid-May due to environmental impacts. Since then, the value of bitcoin has dropped significantly.
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