Inner Mongolia, an autonomous region in northern China, plans to stop all cryptocurrency mining activities in the region by April 2021 as part of an effort to improve energy efficiency.

Regulation of electricity consumption in Inner Mongolia

Inner Mongolia’s government will also stop approving new projects in energy-intensive industries such as steel and coke production, Reuters reported on 1. Mars, citing a draft policy to regulate energy use in the region.

Chinese journalist Wu Blockchain tweeted that the decision could be due to China’s need to meet its carbon emission commitments under the UN climate change agreement. Most energy produced in Inner Mongolia comes from coal, which is a major source of greenhouse gas emissions that are harmful to the climate. China, the world’s second largest polluter after the United States, wants to achieve carbon neutrality by 2060.

Along with provinces like Sichuan and Xinjiang, Inner Mongolia is a popular destination for miners looking to exploit bitcoin (BTC) at low cost. According to Cambridge University’s Bitcoin Electricity Consumption Index, Inner Mongolia consumes 8% of the world’s hashish and China 65%, although these figures have been questioned.

Beijing’s energy consumption should be carbon neutral by 2060

However, the region came under fire from the central government in September for failing to meet energy consumption and intensity targets set by Beijing for 2019. According to a report by Reuters, it is the only one of China’s 30 mainland areas that has not done so.

China’s second-largest coal-producing region is now reducing its consumption in sectors considered major electricity consumers, notably bitumen mining. The operation of the cryptocurrency, which requires a lot of computing power, will be stopped by April this year. Other affected sectors have until the end of 2022 to cease operations.

According to a Reuters report, Inner Mongolia aims to limit the increase in energy consumption to about five million tons of standard coal units by 202. It also aims to reduce energy consumption per unit of economic growth by 3% from 2020 onwards.

According to the draft policy, Inner Mongolia will strengthen energy control measures and achieve the objectives in all economic and social aspects. The region’s energy intensity increased by 9.5 percent from 2016 to 2019.

What do you think of the upcoming crypto mine closure in Inner Mongolia? Let us know in the comment section below.

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frequently asked questions

Will the Bitcoin mining industry be dead by 2020?

Despite predictions by traders and analysts, production in 2020 is not dead. The price of BTC and other cryptocurrents is not holding up, so many players who were using old stuff have left the market. Today, mining is still profitable, but it all depends on what you exploit and how you exploit it.

In what year will Bitcoin’s operations end?

The price will continue to fall by half every four years until the last bitcoin is won. In fact, the extraction of the last bitcoin is unlikely to begin around 2140. However, the Bitcoin network protocol may change from time to time.

How many Bitcoins will there be left by 2020?

How much is left of the 21 million bitcoins? 2.6 million bitcoins have yet to be exploited. Surprisingly, although 18.4 million bitcoins have been won in just over 10 years, it will take another 120 years to win the remaining 2.6 million.

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