The Bitcoin Chinese miners can’t pay the electricity bills because the government started freezing accounts that are related to the cryptocurrency so let’s read more in today’s crypto news.
The current assault on money laundering in the Chinese telecoms and the crypto industry, forced the Bitcoin Chinese miners into more difficulties in paying electricity bills once the banks started freezing the credit cards associated with crypto transactions. According to a local news outlet, the miners were experiencing difficulties in paying electricity bills after surveying 74% of BTC miners in China who revealed they faced issues like these.
The difficulty in paying electricity bills was a result of the card freeze wave that is currently ongoing in China. At the start of 2020, the government of China took a more drastic approach to combating money laundering and illegal activities, targeting the cryptocurrency and the finance industries. Other Chinese crypto participants are then able to keep their holdings in stablecoins in yuan so the miners have to access RMB for bill payments and other operational expenditures. The lack of access to fiat shows another impediment for BTC miners in the country by adding to the problems with seasonal flooding and supply shortage due to the COVID-19 pandemic.
After the 2020 halving, the block reward was set at 6.25BTC which is a 50% decrease from the subsidies that were gathered over the past four years. With the reduced earnings per block, mining operations are now demanding greater efficiency to offset the decrease in revenue. While China is a leading country in terms of global BTC hash rate and now the latest development in the country could see local miners migrating to other regions that are more favorable.
According to the data from Cambridge BTC Electricity Consumption Index, the country is the leader in BTC mining with 65% while US and Russia in second and third place at 7.24% and 6.90%. The US BTC Hash rate increased to 78.33% back in September 2019 and April 2020. In the meantime, China had seen a similar decline within the same period. While the Chinese miners had difficulties paying the electricity bills but Russia could legalize BTC mining soon. Back in September this year, Russia’s Ministry of Finance considered authorizing BTC mining in the country.
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