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China Strictly Bans Bitcoin Mining

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that the Chinese central government required a ban on bitcoin mining across all provinces. Some provinces are leading the implementation of the policy. Xinjiang, Inner Mongolia, Qinghai, Yunnan and Sichuan issued local detailed requirements to power suppliers to cut off power to the miners. So far, large scale bitcoin mining has been brought to a full halt in China. Surprisingly, at the same time, some U.S. states are welcoming bitcoin miners. At the moment, there are at least five bitcoin mining companies being publicly traded in U.S. capital markets. For example, this year Marathon Digital Holdings acquired the Hardin Power Station in Montana to supply power for bitcoin mining. Emiliano Grodski, CEO of Bitfarms, said that, thanks to the Chinese government’s intervention, his company is seeing the most rapid growth in its history. In the U.S., The low cost of energy in Texas has attracted many bitcoin miners. In early 2019, Wyoming passed a bill to recognize virtual currency as an intangible personal asset. Last month, Miami had the world’s largest bitcoin conference. The mayor even welcomed Chinese bitcoin miners to come and offered a low-cost nuclear power supply. The Americans may bring China some enlightenment on this matter.

Source: Sina, June 23, 2021