There has been a lot of controversy regarding the energy consumption for crypto mining in China. And this is why the authorities there are looking into the matter to have a better idea of the same. In Beijing, officials are collecting crypto mining data from local data centers to understand the energy consumption and environmental impact the market has. This report has been confirmed by the Chinese state media. This is a great move as China is taking the initiative to cut down on the country’s carbon footprint.
Crypto mining data checks in China
The Beijing Municipal Bureau of Economy and IT has sent orders for checks conducted on the local data centers of the city. The officials wanted to know about the data centers that are involved with any form of cryptos like BTC or Ethereum. They also issued an energy notice concerning the same. As per the reports, the notice also targeted the three largest telecom operators of China and asked them to provide data on the amount of energy consumed for crypto mining. As of now, we only know that the checks are conducted in Beijing, but entire country checks could happen soon.
This step by the Chinese authorities might push many mining centers towards the use of renewable energy sources. In general, the use of renewable energy is bound to be cheaper than the traditional sources of electricity. But China has one of the cheapest electricity rates globally, making this a difficult choice. China has always taken a strong stance towards the emission of carbon. They also have the target of making a carbon-neutral country. And this is why this move might be a step in that direction.
Why is Bitcoin mining a boon and a curse?
Theoretically, Bitcoin mining should be the reason why people start to use renewable energy resources. But in real life, the story is something else. Yes, there are a lot of mining centers that use renewable energy for the mining crypto. But they account for only 1% of the entire crypto mined daily. In fact, there is another argument that doesn’t support the theory. The renewable energy that we plan to use for mining crypto can actually be used for many other industries that too have a high carbon footprint.
These industries are essential for the growth and survival of humankind. For example, Steel production, automotive, medicines, and many others could actually cut down on the use of carbon-based fuel and opt for a clear version. But if all the energy goes for mining Bitcoin or some other crypto, then it is a waste.
What do you think about the energy consumption of Bitcoin mining? And do you think that it can actually benefit us by promoting the use of renewable energy resources? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: Ethereum could hit $10k by the end of the year, says FundStrat
