Chinese miners are migrating to the north to access cheap thermal and wind power after the wet season in Sichuan.
Migrating For Cheaper Electricity
Miners are migrating to Xinjiang and other regions located in Inner Mongolia for cheaper electricity rates.
According to a local news publication, the wet season in Sichuan starts in April while ending at the end of October.
‘During the wet season, miners can get an astounding 0.08 yuan per kWh or $0.01 per kWh.’
When the season ends, small farmers move northbound for inexpensive electrical rates.
Mining Machine Exceed Mining Camps
Columnist Vincent He writes that the number of mining machines “exceeds the upper limit of mining camps in Northern China, and some of them may be abandoned.”
Vincent adds that millions of mining machines will be moved in a short period of time while stating that many companies in the Southern province of China are already moving.
“The 1,000 mining machines I have were previously hosted in one mining camp,” a miner detailed to Vincent. “This year, the mining camp told me that there were not enough seats — So I have to host some of them at another mining camp, which undoubtedly increased the difficulty of management for me.”
Mining Crackdown
The governments of Xinjiang and Inner Mongolia have been cracking down on mining operations and the officials have “curbed the scale of the local mining industry.”
The autonomous province of Inner Mongolia issued a “notice on checking and rectifying virtual currency mining”. The notice demands removal “of the province’s crypto mining enterprises”.
Source: news.bitcoin.com | Image: Shutterstock
Comments