China only cuts bitcoin

World January 5, 2018 15:09

amsterdam - The Chinese government intervenes with the bitcon. Power consumption for production of the wanted currency has been restricted. The Chinese central bank calls the intervention necessary. The enormous power consumption for bitcoin production would disturb the energy consumption in regions in the country.

In the long run there could be shortages, according to the central bank during a closed meeting last Wednesday, local media report. Datacenters and small businesses with hangars full of continuously operating PCs that make the wanted coin ('mines') consume power that Beijing deems necessary elsewhere.

Local authorities are instructed to run the energy-guzzling bitcoin makers 'orderly' from their companies, according to sources in China about the decision.

This seems to put an end to production at the lowest rates in the world, for a coin that, thanks to this mines, is almost $ 16. 000 each goes out of control.

Bitcoin was worth fifteen times more thanks to last year's demand. The currency is extremely popular in China, which has a relatively large number of makers of the bitcoin and the remaining 1400 digital coins such as ethereum and ripple. The Chinese are looking for an alternative to the mistrusted yuan.

The energy consumption for all crypto-coin makers is high worldwide: the entire bitcoin production to a maximum of 21 million coins requires as much power as 3.4 million American households, calculated research platform Digiconomist.

Many power plants already have supply problems by default. The new wind and solar parks also have more outages than in Europe, according to Bloomberg New Energy Finance. Since 2014, the power stations according to this data service do not, on average, exceed twelve hours of delivery per day.

It is not the first intervention in bitcoins in China. The government banned crowdfunding with bitcoin coins, the ico's, last year. Local smaller exchanges that only trade in crypto coins are drastically restricted or closed.

In response, large producers such as Bitmain, the second collective in China, have put PC racks in Singapore to work. Bitmain also mines in the United States and Canada. BTC. top now opens production in Canada, competitor ViaBTC has accommodated all my activities in Iceland and the US. As a reason they call the Bloomberg news agency the certainty about regulations and political stability.

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