Just recently, the local media groups of China have published reports that are rather concerning for the entire crypto-community. As per the reports, the Chinese authorities have ordered one of the electricity producers in the Yunnan province to stop providing power to crypto-mines.
The Yunnan province is popularly known among the crypto-community for producing the fourth-largest Bitcoin (BTC) hash rate in China. The local reports also state that it is the authorities from the city of Baoshan (Yunnan) that are currently in the process of escalating efforts.
The city authorities are trying hard to crack-down on the Bitcoin (BTC) miners in the Baoshan. To execute the plan, the authorities have ordered the local electricity producers to cut down the power supply to the Bitcoin (BTC) miners.
The reports were later confirmed by one of the crypto-reporters from China ‘Colin Wu’. The reporter tweeted through his Twitter account stating that he has been approached by several crypto-miners in the past few days.
Colin Wu also provided pictures of the notices that were sent to the miners from the authorities’ end. The notices sent were to intimate the electricity producers to cut down the supply to the crypto-mines. Colin Wu confirmed the reports on his tweet that he posted on the 30th of November, 2020.
In addition to the tweet confirming the reports, Wu also shared his opinion about the recent actions taken by the Chinese authorities. He stated that there are high chances that the ban has been imposed by the bodies that are still leaning towards localized economic interests.
He also stated that at present, it would be unwise to overestimate the impact of the notices issued by the local authorities. He stated that there are high chances that these actions have been taken based on local economic interests. In the current events, it cannot be judged that all these actions have been as a result of political pressure.
The recent statistical reports published by the crypto-data analyzing firms are also confirming the reports. As per the recent hash rate reports, there has been almost a 10% drop in the hash rate for crypto-mining transactions.
Before the ban, the hash rate being observed was 140 exahashes and in the last 24 hours, the rate has dropped down to 125 EX/s.
The Bitcoin Electricity Consumption Index of the Cambridge University also seems to be authenticating the information about the Yunnan province. The Cambridge University has reported that Yunnan currently ranks as the fourth-largest province in the region with respect to the mining hash rate. As of April 2020, the Yunnan province is right behind Sichuan, Xinjian, and the Inner Mongolia region as per hash rate.