Research on energy blockchain bitcoin mining is prohibited in Inner Mongolia Autonomous Region of China to reduce energy consumption

[energy people are watching. Click on the top right corner to add ‘follow’] Bitcoin mining banned in Inner Mongolia to reduce energy consumption Original author: Dharna Noor over the past decade, bitcoin has put a lot of pressure on China’s coal-based power grid in Inner Mongolia. Now, Inner Mongolia is cutting back on bitcoin mining. Over the weekend, provincial officials announced that new bitcoin and other cryptocurrency mining companies would be banned and existing mining activities would be shut down to reduce power consumption. Cryptocurrency mining consumes a lot of energy. A study has shown that globally, bitcoin mining is not really about mining, but about creating new bitcoins by solving complex mathematical cryptography problems, using as much coal as New Zealand as a whole. These researchers estimate that bitcoin mining accounts for about 0.5% of the world’s electricity consumption. Nearly half of the world’s bitcoin mining takes place in China. Because of the extremely low energy prices in Inner Mongolia, many bitcoin miners have invested exclusively in building factories there. Inner Mongolia is China’s third largest mining base. However, bitcoin mining has led to a surge in carbon emissions due to the local power grid being powered by a large amount of coal, which is not conducive to the realization of China’s leaders’ commitment to reach the peak of carbon emissions by 2030 and achieve carbon neutrality by 2060. China has always been consistent with its words and deeds. In order to fulfill its promise, local governments in China immediately formulated new policies to reduce electricity consumption. In the draft rules released on Thursday, the Inner Mongolia development and Reform Commission proposed an immediate and complete cessation of new bitcoin mining and a complete termination of existing projects by the end of April. The public consultation period on the regulation lasted until March 3. China is sparing no effort to save energy and reduce emissions. The plan aims to reduce energy intensity, the amount of energy consumed per unit of economic growth, which shows the energy efficiency of the economy, by 3% compared with 2020. To achieve this goal, the Inner Mongolia government also plans to stop approving other new energy intensive projects in the autonomous region, such as new steel, methanol and coke projects, which have a high carbon content of coke in the fuel. The policy of stopping cryptocurrency mining in Inner Mongolia is actually very beneficial and popular. But to really control the energy impact of cryptocurrency mining, much more change is needed. Cryptocurrency is designed to be energy intensive because it requires constantly mining new tokens and running computers to solve technical problems and finally reach a deal. The blockchain operates in a way that ensures that each bitcoin is unique, preventing the same coin from being used multiple times for mining. However, although this ensures its safety, it also makes the carbon intensity remain high. Alternatives to cryptocurrency mining, such as proof of title (as opposed to current proof of work), can reduce the number of computers used to solve difficult problems, thereby reducing carbon emissions. But ultimately, bitcoin’s carbon problems are related to the larger problem of polluting the fossil fuel infrastructure that powers most of the world’s power grids. Converting more of the grid power used in bitcoin mining to renewable energy is bound to reduce bitcoin’s carbon intensity. But to be honest, there are enough important sectors in the world, like heating and housing, that need to be decarbonized. The less energy the world uses, the easier it will be to produce enough renewable energy to power everything in the world. Although cryptocurrency is very stable, I still think bitcoin is of little use. Disclaimer: the above content is reproduced from energy public opinion, and the content does not represent the position of the platform. National energy information platform: 010-65367702, email: Hz @ people-energy.com.cn, address: People’s daily, No.2, Jintai West Road, Chaoyang District, Beijing

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