thecoinrepublic.com
- A lot of workers’ health was at stake with illicit crypto mining activity that was on the rise in China
- The regulations on mining and trading activities plunged the price of Bitcoin by 40% from its high of $64k in April
- Net-zero carbon emissions are at the core of Chinese environmental concerns
It is still a lesser-known fact that illicit mining activities that undermined the health of mineworkers were one of the primary reasons for the Chinese government to place a ban on the same. Several parts of China noticed a spurt in electricity demand and, in return, higher demand for coal. The electricity is used to mine Bitcoin and other cryptocurrencies. China accounts for nearly 65% of the world’s mining activity. No doubt that Xi Jinping’s environmental targets are ambitious, with net-zero emissions by 2060.
Electricity demand being met recklessly
Government officials understood that mines are operating out of their capacity. The ones that were shut are being reopened without any confirmation from the local authorities.
In Xinjiang, last month, approximately 21 workers were trapped in a coal mine who were saved after a rescue team did their part. The safety of health workers cannot be compromised at any time, and hence the government has taken a stricter stand.
In 2013 and 2017, the government had placed bans on the trading of cryptocurrency, but it was not effective.
However, this time around, a host of crypto exchanges has planned to set up North America and Europe to continue functioning smoothly.
China is the cheapest source of electricity, and the ban will stop the much-needed revenue for coal mines to stay afloat.
Minimal carbon emissions are at the core of Chinese environmental goals
The government plans to ring in a plethora of policies and norms to curtail carbon emissions and the country’s footprint.
For every $1 of Bitcoin mined in 2018, China was responsible for $0.37 of climate and health change worldwide. The numbers are alarming to this date as authorities have clamped down on mining activities with a lot of seriousness.
Reports claim a direct linkage between the rise in demand for coal and cryptocurrency in Inner Mongolia and Xinjiang.
The latter accounts for 36% of Bitcoin mining in the country as it constitutes underdeveloped grids, suitable temperature for mining rigs and inexpensive coal-driven electricity.