Bitcoin is the leading cryptocurrency globally, with its value hitting astronomical heights in recent weeks amidst a slump. It’s investors are starting to believe in the crypto giant again after it hit a new high this week. Amidst the good news, BTC miners in Yunnan, a province in China, have been threatened by their authorities.
The local authorities of the Chinese region have ordered electricity distributors to stop providing power to the Miners. A journalist, Colin Wu, in a tweet, said he received several messages from Miners of BTC in Yunnan who said their authorities had given this order. The province of Yunnan is the third-largest mining place of the cryptocurrency in China after Sichuan and Xinjiang.
Analysts say the ban is not a threat to the crypto space
While analysts believe that the electricity ban of BTC miners by the local authorities in Yunnan was fueled by a lack of interest in cryptocurrency and a threat to the crypto space, Colin Wu, who claims to have received several scanned copies of documents from these Miners, believe that it is not a big deal yet. He believes that the ban was influenced by localized economic interest, and Miners should not see it as a threat to the business or damage to their industry.
China may have taken time to accept and adopt the Blockchain technology, but it is now slowly adopting it into its economy. The Asian country has only recently launched a digital currency, the digital yuan, which has started testing in many of its provinces.
Although the acceptance of the currency is currently in mixed feelings as some citizens feel it will greatly benefit the economy, others believe it is presently being overestimated. The country remains the largest crypto mining hub in the world. However, many investors and analysts are starting to wonder if that will change due to the new restrictions being suffered by Miners.
Yunnan produces the fourth largest mining hash rate
Some Analysts still believe that the country has not fully opened its economy up for BTC and other cryptocurrencies. They believe China needs to show more support to the Cryptocurrency space. It is worthy to note that Yunnan’s government had made moves against miners in June 2020, when it ordered the shutdown of 64 unauthorized mining operations. In that auspicious move, the government claimed that it did that because it has identified security risks and tax evasion by the Miners.
Hash rate refers to the amount of computing power miners are using to validate the Bitcoin blockchain. According to Cambridge University’s BECI (Bitcoin Electricity Consumption Index), Yunnan ranks as China’s fourth-largest region by mining hash rate. It also constitutes about 42% of the world’s global hash rate as it surpasses all countries except the US, Kazakhstan, and Russia.