The actions of Bitcoin mining, despite benefitting the miners, continue to face criticisms from many spheres of life. Most of the criticisms this activity faces continue to be centered around the impacts and effects of the operation on the society. Many crypto analysts, despite being huge fans of the activity, as it makes Bitcoin available in excess, have also chastised these miners. The calls have been to depend on energy sources that leave little or no effect. Unfortunately, last week’s flooding that occurred in one of China’s top Bitcoin mining hubs- Xinjiang, has led to calls for an alternate source of power again.
Last weekend’s Xinjiang’s shutdown negatively affected the global hash rate
China continues to play host to most of the world’s leading Bitcoin mining rigs, as the nations account for almost 70% of the Bitcoin mined globally. This is because most of these mining firms have continued to exploit the cheap energy resource offerings of the Asian country. The country’s mining hubs rely on energy from Coal, which is cheap and has proven to be sustainable enough. However, with the last week’s shut down of Xinjiang, the nation’s mining hubs have to deliberate on alternate sources of power, considering that Coal seems insufficient and its resultant effect is hazardous.
Last week’s unfortunate incident contributed negatively to the global hash rate of Bitcoin, with the figures stooping so low to the one recorded last November. However, the implication of this situation still means that the mining hubs in the country need to be on the lookout for alternatives or similarly reduce their over-reliance on Coal. The calls for cleaner energy resources, which have continued to be high, should also drive these miners to look out for alternate power sources.
The government will have to step in
The intensive energy requirement of Bitcoin mining means that miners have to look out for not only the cleanest energy but also the most efficient energy source. Since China hosts most of these miners, the nation is expected to lead the calls for a cleaner and more renewable energy source. Many Analysts believe that the nation’s cheap dirty energy offerings have left miners with no choice other than to exploit for their selfish reasons. However, if the nation cuts off these miners from Coal, the need for alternatives will be urgent, and miners will have no choice other than to seek alternatives.
If alternatives are to be cleaner energy, the nation’s regulators will have to mandate these miners to comply with such regulations. Unfortunately, miners would always be wary of power costs, as expensive power costs will leave them out of business. The onus will now fall on the government, starting with China’s government, to offer these miners alternate power sources at the most subsidized rate. Many analysts believe that, should all these be put in place, Bitcoin mining will no longer face so many criticisms in the future.