China Plans To Close Bitcoin Mining Project In Mongolia

Bitcoin mining in China will close (Bitcoin)

JAKARTA - The bitcoin mining project will be temporarily suspended by the Chinese government. This closure plan is in order to reduce large electricity consumption.

As is known, bitcoin mining activity drains a large amount of electrical energy. Apart from that, miners also have to solve complex algorithms using high-specification computers.

The location of the bitcoin mining that will be closed is in Inner Mongolia, China. Where so far the cryptocurrency mining project operates is quite large there.

Based on the results of expert research from the University of Cambridge, bitcoin mining activity consumes about 128.88 hours of energy per year. This electricity consumption is greater than the electricity used in Argentina and Ukraine.

China alone accounts for about 65 percent of the mining activities of cryptocurrency. Inner Mongolia has contributed 8 percent. For comparison, the United States (US) only accounts for around 7.2 percent of bitcoin mining.

The Inner Mongolia region, located in northern China has temporarily banned bitcoin mining activities because it cannot meet the amount that has been targeted by the Chinese government regarding energy use. Because in the previous year, Beijing had reprimanded the autonomous region for using a large amount of electrical energy.

This was immediately responded to by the development and reform commission in the area which decided to reduce electricity consumption. The plan includes the closure of a cryptocurrency mining project which will take place in April 2021. They also do not allow any new bitcoin mining projects.

On the other hand, the Xi Jinping government has decided to crack down on cryptocurrency business players. China is also reportedly testing the use of a digital Yuan currency to stem the rate of bitcoin.

Under Xi Jinping's administration, China promoted environmentally friendly activities in order to reduce carbon emissions in the country. The Bamboo Curtain country is targeting net carbon emissions by 2060.