China would like to slow down mining of bitcoins because of environmental impact

China would like to slow down mining of bitcoins, China may further restrict the so-called mining of bitcoin. Three-quarters of the world’s supply of the digital currency is still produced in the country. However, the large energy consumption involved in mining bitcoin would be at odds with the country’s sustainable ambitions. According to the American business newspaper The Wall Street Journal, miners are increasingly moving to the West.

The bitcoin works on the basis of blockchain technology, a kind of collective log in which all participants together keep track of all transactions. This register is supplemented every 10 minutes with a new ‘page’ with the latest changes. In order to safely process each supplement, a complex mathematical formula must be solved.

China would like to slow down mining of bitcoins

Worldwide, special computer systems are puzzling on it all day long. This puzzle is necessary to finally arrive at the most energy-consuming moment: producing (or mining) a bitcoin.

Beijing’s threat shows that the production of the digital currency, which is beyond the reach of governments, is a vulnerability. Mining depends on ample supplies of cheap electricity and equipment. It is precisely these elements that China used to become the world’s largest manufacturing country.

China would like to slow down mining of bitcoins

China in general has difficulty with cryptocurrencies. For years, no legal exchange of bitcoin was allowed in China, even when the country’s entrepreneurs emerged as the main producers.

The country already made the first plans in 2018 to restrict the mining of crypto coins. In particular, the Inner Mongolia region, where energy is cheap, is popular. The autonomous region previously announced that it wanted to restrict mining.

Earlier, Iran announced that it would temporarily not allow the mining of bitcoin. With the ban, Iran wants to prevent power shortages during the summer period. Iran accounts for the production of 4.5 percent of bitcoin worldwide.

The environmental impact of the cryptocurrency bitcoin was highlighted earlier last month by Tesla owner Elon Musk. His company first accepted bitcoin as a means of payment, but that was reversed in mid-May, due to the consequences for the environment. Since then, the value of bitcoin has dropped considerably.

China would like to slow down mining of bitcoins

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China would like to slow down mining of bitcoins