Representatives of Canaan Inc, a major Chinese manufacturer of bitcoin mining hardware, have argued that the industry reduces energy waste, helps create jobs and fuels the local economy, as China recently cracked down on the practice.
“Profit-seeking miners prefer areas with lower electricity prices that indicate oversupply and potential energy waste,” Canaan CEO Zhang Nangeng said during an earnings conference call. Reuters. “Bitcoin miners are also helping to create jobs in poor areas and contribute to financial coffers.”
Nangeng also argued that while bitcoin mining factories that use fossil fuels are hampering China’s green efforts, those operating with renewable and sustainable sources should not be affected by the campaign.
This is followed by Canaan’s comments Permit From the Financial Stability and Development Commission of China’s State Council as of May 21, the statement said the government will “resolutely crack down on bitcoin mining and commercial behavior and resolutely prevent the transfer of individual risks to society.”
China’s Conspicuous Effort to Curb Bitcoin Mining It seems to have affected the activity. Moreover, Nanjing said that the uncertainty generated by such policies is driving miners to leave China, causing some Canaan customers to stop placing new orders for mining equipment.
to me ReutersOverseas markets generated 78.4% of the Chinese bitcoin mining hardware maker’s revenue in the first quarter of 2021 — compared to just 4.9% in the same period in 2020.
A country as large as China that bans bitcoin mining may seem like a huge disadvantage to the network at first. However, some have argued the exact opposite, including Coin Metrics co-founder Nick Carter – who posted a file Video Explain reasoning. In essence, he claimed that by forcing mining out of China, Bitcoin’s carbon emissions would be reduced without negatively impacting network security.