Thursday, September 29, 2022

Crypto Mining Powered By Clean Energy Should Be Spared, Says Canaan CEO

One of the most popular developers of Bitcoin mining machines in China has raised his voice against the latest ban on crypto mining activities in the country. As per the individual, the businesses involved in crypto mining activity allow the better usage of electricity. Also, those companies generate employment and local economy there.

A few of the companies crypto mining in Beijing should be spared from the crackdown because they have been using clean energy for their operation, says Zhang Nangeng, the CEO of Nasdaq-listed Canaan Inc.

He further mentioned, “For-profit miners prefer regions with low electricity prices that indicate oversupply, and likely energy waste.” Additionally, he said, “Bitcoin miners also help create jobs in impoverished regions and contribute to fiscal coffers.”

A month ago, the State Council of China issued a notification restricting bitcoin mining and trading activities. It also introduces measures to annihilate the mining activities in Inner Mongolia, the major mining center.

As per the report, a meeting was held between Southwest Sichuan’s Energy regulators and the local power generators on Wednesday. The meeting was organized to verify the mining activities in the second biggest Bitcoin production hub of China. 

In order to mine a Bitcoin or any other cryptocurrency, the miners use high-powered computers to solve the complex mathematical puzzles in an energy-intensive process. 

Notably, this process often depends on fossil fuels, especially coal.

Due to an uncertain policy in China, domestic miners have been forced to move overseas. Zhang mentioned that as the miners have started shifting their business, they have asked their clients to put a hold on placing orders for some time.

Also, the crackdown has prompted a few of the miners in the country to undersell their mining equipment.

As the Bitcoin price collapsed, the spot price of the Bitcoin mining machines also came down to 20-30 percent. 

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