China’s Bitcoin Mining Province, Sichuan, Advised to Leverage its Hydro Energy to Remain Attractive
The Province of Sichuan in China has been a booming crypto mining hub with most of the world’s Bitcoin being mined within its environs. This has attracted sentiments from its local leaders like the former V.C of China’s Securities Regulatory Commission, Yang Jiang, who thinks they ought to continue using the hydro energy available in creation of more opportunities.
Sichuan’s Blockchain and Crypto Mining Opportunity
Yang who is now a member of the government-backed Sichuan think tank shared his views during a committee meeting held on 27th October. Sichuan daily reported that the think-tank, whose mandate is to look at high-end developments, discussed opportunities tied to the resources located in the Province. Most notably was the potential to tap into both blockchain and crypto operations that have been identified as power intensive.
According to Yang, 70% of BTC is mined within Sichuan. This figure is 20% higher than Coinshare’s stats which estimate the turnover at half of the World’s Bitcoin mining activity. However, Sichuan’s potential still stands out given the energy intensive nature of blockchains and cryptocurrencies. Yang’s recommendations come a few days after the Province leadership held a seminar on how they could maximize utility from excessive hydro energy.
Regulatory Pressure from Chinese Authorities
The crypto mining activities in Sichuan have had a fair share of challenges especially from a regulatory point. Earlier in the year, China’s authorities began investigations into illegal cryptocurrency miners operating in Sichuan. They had set up most of the mining activities along Dadu River with over 30,000 machines said to have been illegally constructed. This is not to say that Bitcoin mining within Sichuan has not been thriving. A number of reports within the crypto space point out that almost 70% of BTC is held in China.