China continues to push operators out of the country, as the first big mining operations make their move to the USA. Beijing has always taken a hard stance against cryptocurrencies, regarding them as volatile and potentially destabilising, but had tolerated bitcoin mining until recently. It has started to crack down on mining due to its heavy reliance on cheap power and related impact on the environment – which clashes with China’s vow to reduce carbon dioxide emissions by at least 65 per cent by 2030, relative to 2005 levels, and then achieve carbon neutrality by 2060.
“Whilst China has always been very clear on its negative views on bitcoin buying, selling and trading, bitcoin mining was always tolerated. But that has now changed, ow [crypto mining] is moving overseas”Henri Arslanian, global crypto leader at PwC
As of now China is the world’s largest bitcoin miner by hash rate, a measure of total computational power used to support the bitcoin network, accounting for about 65 per cent of total power in April. This is bound to change over the next few months.