The supply of electricity for miners was banned in the Chinese province

The Baoshan city authorities have decided to turn off the electricity supply to companies involved in the extraction of cryptocurrency, said local journalist Colin Wu. He explained what could have caused the restrictions.

Authorities in the city of Baoshan in Yunnan province have ordered local electricity suppliers to shut off their supply to cryptocurrency miners. Chinese journalist Colin Wu told about this. On his Twitter account, he posted a snapshot of the official decree, noting that reports of restrictive measures came from several miners.

There is no need to overestimate the impact of this incident. The attitude of China local power companies towards crypto mining is often changing. It is more a demand for economic interests than political pressure.

— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 30, 2020

Wu stressed that the impact of the incident should not be overestimated. Local government sentiments regarding mining and cryptocurrency change frequently. These bans cannot be called China’s purposeful policies. Most likely, local government agencies were interested in the economic aspect, he said.

At the end of October, the hashrate of the bitcoin network fell by almost 30%. This happened due to the end of the rainy season in the Chinese province of Sichuan, where many hydroelectric power plants are located. In this regard, miners began to turn off the equipment to transport it to Inner Mongolia province.

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