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Tuesday, November 14, 2017

Cheap power for China's Bitcoin miners may be coming to an end...


It's been a day full of inaccurate news - it started out with people mistakenly translating an announcement from a Chinese power company as a "ban on Bitcoin miners."

However, now the power company clarified their stance:

"We are a state-owned enterprise, not an administrative branch that has the power to determine whether bitcoin mining is legitimate or not."

The dispute rather is about who gets the power first, and claims that some miners are violating an agreement where local residents have first priority.

Miners in western countries have always complained about the advantage Chinese miners have with low cost power. 

That era may be coming to an end as a "no new power plants" policy has been announced.

This mixed with growing demand for power and development in the country, what felt like an unlimited supply of cheap power, will all need to be accounted for.

As power companies look into current distribution, mines may raise some red flags and be met with some increased costs.

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Author: Ross Davis
San Francisco News Desk