Mining is one of the most important activities within cryptocurrency and some would argue that it is the most important because it is the way by with cryptocurrencies are brought into the world in the first place and as such, the industry cannot exist without it. However, it should be noted that mining has been rather controversial in the last few years, mostly due to the high cost of mining and this is due mostly to a large amount of electricity that is required to mine cryptocurrency. As a result of this, many people have been arrested for stealing electricity or attempting to acquire electricity at a cheaper price.
Now, miners in the Chinese province of Sichuan are being pressured by authorities to reduce the intensity of their mining efforts because there is a shortage of electricity within the region.
Tone it Down
According to December 29, 2019 reports, the period of October to April is the dry season in southwest Asia and as such, electricity supply drops. Because the electricity supply is dropping, local authorities are trying to reduce overall electricity use and are targeting cryptocurrency miners since the activity is such an energy-intensive one.
In the region, crypto mining firms are not officially allowed but were tolerated by authorities and this is because during the wet season, hydropower is generated in an amount that is more than needed and thus, the activities of the mining companies do not constitute any hindrance. However, during the dry season when electricity is much more scarce, their attention is turned to the crypto mining firms and they are trying to crack down on their activities.
These activities have not been limited to the crypto mining firms themselves but also to powerplants as two plants were fined the equivalent of $140,000 each in December in the region for providing power to crypto mining firms without obtaining a license. It should be noted that China has seized over 7,000 pieces of mining equipment and is also cracking down on crypto mining within regions like Mongolia.