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Bitcoin grows after China declares war on crypto mining

Bitcoin grows after China declares war on crypto mining
02.03.2021 17:31

China’s Inner Mongolia will end all cryptocurrency mining projects and stop reviewing new projects in industries which consume large amounts of energy, such as steel, coke and methanol production, as it attempts to meet energy efficiency targets.

The Autonomous Zone, the industry’s choice for its cheap electricity, also banned new digital coin ventures, according to a draft proposal reported on the Inner Mongolia Growth and Reform Commission website on Feb. 25. The goal is to reduce energy demand growth to about 1.9% in 2021.

Local governments in China are scrambling to control energy consumption and improve energy efficiency after President Xi Jinping pledged to achieve carbon neutrality before 2060.

In 2016-2019, energy intensity in Inner Mongolia rose by 9.5% while overall energy consumption grew by 65.62 million tonnes.

Local censorship is rekindling old fears. After 2017, Beijing has scrapped initial coin offerings and clamped down on virtual currency trade within its borders, forcing several international exchanges. The nation once had around 90 per cent of its trades, but the lion’s share of mines and big players including Bitmain Technologies Ltd. have since fled abroad.