Mainly because the local mineral resources are rich, the electricity is cheap, and the mining cost of Bitcoin is the lowest, so many people flock there to mine. According to media reports, a few days ago, the Inner Mongolia government announced that it would clean up all related bitcoin mining projects within its jurisdiction during the Tenth Five-Year Plan period, and Inner Mongolia has suspended new applications for related mining projects. The person in charge of the local mining project told the media that due to the change of policy, the mining machine may have to move away these days. The person in charge also revealed that many mining machines in Inner Mongolia have been transported to Yunnan, Sichuan and other places with sufficient water and electricity and cheap electricity. Some analysts in the energy industry also pointed out that the local electricity in Inner Mongolia mainly comes from thermal power, and the mining power consumption is huge, which is not conducive to the protection of local natural ecology, so the government began to withdraw related projects.

Professionals point out that the production process of Bitcoin is realized by computing power. Mining machine? Working day and night to get the return of bitcoin, so the biggest cost of mining is power resources. General mining organizations will choose some remote places where electricity is cheaper, such as Guizhou, Yunnan, which is rich in hydropower generation, and Inner Mongolia, which is rich in thermal power generation. These mining organizations value cheap electricity in these places.

Previously, some institutions calculated that the total electricity consumption in one year during bitcoin mining exceeded the total electricity consumption in Norway and other countries. If these power sources are not clean energy, in fact, the power generation pollution caused every year is huge. However, due to the recent rising bitcoin market, huge profits have attracted a large number of institutions to start mining activities.

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Inner Mongolia announced plans to completely shut down the virtual currency mining project before the end of April, which triggered a heated discussion in the industry. Inner Mongolia is rich in electric power resources and has been favored by mine owners in recent years. However, the high energy consumption in the mining process also increases the pressure of energy consumption control in Inner Mongolia.

The closure of mines in Inner Mongolia will further accelerate the integration of virtual currency mining to some extent. Once the mine is closed, it will find another place to continue. With the tightening of domestic supervision, many domestic mines have moved overseas.

2019165438+1October1,the inner Mongolia autonomous region department of industry and information technology released "about virtual currency? Mining? The Notice on Joint Inspection of Enterprises' Clean-up and Rectification (hereinafter referred to as the Inspection Notice) requires the joint inspection team of the autonomous region to go to some union cities to conduct joint inspection on the clean-up and rectification of virtual currency mining enterprises.

Not only that, the virtual currency mining industry was once included in the list of eliminated industries. On April 8, 20 19, the National Development and Reform Commission issued the Guidance Catalogue of Industrial Structure Adjustment (version 20 19, draft for comments), which defined virtual currency mining as a project that was not marked with the elimination period or plan, and was explicitly eliminated or immediately eliminated by the national industrial policy. 11June, the national development and reform commission issued the industrial structure adjustment guidance catalogue (version 20 19), which was originally included in the eliminated industries? Virtual currency mining activities? Has been deleted.