It is known that cryptocurrencies need energy for mining and that it is also volatile and the presence of news like this may adversely affect the cryptocurrency market.
But what if it was actually implemented and energy consumption was reduced in general in China or around the world?
As a Chinese writer whose listing is centered around anything specific to digital money exchange and digital money mining work in China, China expects to take some estimates that are likely to hurt the country's bitcoin mining industry.
Above is the tweet that Wu took to the crowd on Twitter, citing media inclusiveness indicating that massive energy-burning activities would be strictly prohibited.
The head of the Chinese Communist Party, Xi Jinping, has sworn that within five years, starting in 2026, China will focus on reducing fossil fuel by-products.
Consequently, projects that consume an exceptionally high amount of energy and cannot meet relevant guidelines later will be 'categorically prohibited'.
The decision has negative consequences for the bitcoin mining industry in China:
Since the main part of the bitcoin hash rate is provided by Chinese mining pools, Colin Wu predicts that the downturn in the fiery pledges of energy may affect the bitcoin mining industry.
Despite this, it is widely known that bitcoin rigs around the world are making an honest effort to exploit renewable energy sources or mine digital currencies in cold environments or countries that provide modest energy, such as Iran and Iceland ...
We must note that the Chinese president's choice of projects that burn energy significantly does not mean that he explicitly refers to the bitcoin mining industry, which cannot be rejected likewise that it burns a lot of electrical energy, especially in China, which contains the most minerals there.
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