China’s Inner Mongolia Bans Crypto Mining while Bitcoin Miners Rake in Record-Breaking Revenue
The cryptocurrency miners have broken the December 2017 revenue record of $1.25 billion by generating a whopping $1.36 billion in revenue in February.
Up 21% from January revenue, the latest numbers are in part due to the price of Bitcoin hitting a new peak at just above $58,300. The price ATH of the last bull cycle was hit in Dec. 2020.
Miner revenue based on terahash per second (Th/s) also kept up between $0.23 and $0.38 in the month. Besides profiting from selling their BTC at high prices, transaction fees were another driver of these high revenues. Miners raked in $186 million, 13.7% of total revenue from network fees. Up 10.3% from January, fee revenue also hit its highest level since Jan. 2018.
Amidst the growing revenue of miners, China’s Inner Mongolia has banned crypto mining, reported Bloomberg. The region accounts for 8% of the global Bitcoin mining hash rate.
The autonomous region is planning to shut down all crypto-related projects by April and further ban new digital coin projects, according to a draft plan posted on the Inner Mongolia Development and Reform Commission’s website on Feb. 25.
Inner Mongolia, which is known for its cheap energy supplies, aims to cut down emissions per unit of gross domestic product (GDP) by 3% this year and constrain the growth in energy consumption to 1.9% this year.
The proposal to curb cryptocurrency mining in the region was first introduced back in 2018, and the next year, authorities clamped down on the “illegal” Bitcoin mining business.
“It isn't a real bull market unless China is ‘banning' Bitcoin Bullish FUD,” commented Alistair Milne, CIO at Altana Digital Currency Fund.