The Sichuan Authorities Going to Limit the Mining Enterprises Activities
Miners of the Gardze Tibetan Autonomous Region in China were subjected to pressure from local authorities, who want to limit crypto entrepreneurs in the matter of electricity. The main reason for this is the dry season and the lack of electricity in the region. The government of the Autonomous Prefecture of western Sichuan province in China should hold an emergency meeting on this issue, which will be attended by representatives of regulators, local power plants and mining companies, became known. The authorities emphasize that they are not going to close bitcoin mining enterprises at all, but in the current situation, they consider it necessary to discuss the issue of restricting this industry for some time. The government is concerned about the lack of reserve capacities that could ensure uninterrupted power supply to the region this dry winter. Since there is no rain, local hydroelectric power stations cannot generate enough energy, and this region provides 54% of the bitcoin network hash rate. In other words, the overwhelming majority of Chinese mining farms are located there. We will see how this affects the complexity of the network very soon.