CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$36,550.00
  • ethereum
    ETH$1,399.96
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Chinese Bitcoin Miners Can’t Pay Power Companies as Government Reportedly Freezes Bank Cards

    Chinese Bitcoin Miners Can’t Pay Power Companies as Government Reportedly Freezes Bank Cards

    Author: Anthonia Isichei

    Last Updated Nov 16, 2020 @ 14:47

    Chinese Bitcoin miners are reportedly facing difficulties paying their electricity bills. The reason is that the government is freezing accounts associated with the cryptocurrency.

    The ongoing assault on money laundering in the Chinese telecoms and crypto industry has seen Bitcoin miners facing difficulties in paying electricity bills as banks freeze cards associated with cryptocurrency transactions.

    Three-quarter of Chinese Bitcoin Miners Can’t Pay for Electricity

    According to a local news outlet, in a tweet thread on November 16, 2020, Chinese miners were reportedly experiencing difficulties in paying electricity bills. The outlet was able to survey 74% of Bitcoin miners in China, who revealed that they faced such problems.

    The difficulty in paying electricity bills was a result of the card freeze wave experienced in China. At the beginning of 2020, the government of China took a more drastic approach towards combating money laundering and illegal activities, specifically targeting the cryptocurrency and finance industries.

    Whereas other Chinese crypto participants can keep their holdings in stablecoins in lieu of the yuan, miners need access to RMB for bill payments and other operational expenditures. This lack of access to fiat is yet another impediment for Bitcoin miners in the country in addition to other problems like seasonal flooding, supply shortages due to COVID-19, among others.

    Following the May 2020 halving, the block reward became 6.25 BTC, a 50% decrease from the subsidies earned over the last four years. With the reduced earnings per block, mining operations are reportedly pursuing greater efficiency to offset the decreased revenue.

    Will Hash Power Migrate Out of China?

    While China is still the leading country in terms of global bitcoin hash rate, the latest development coming out of the country could see local miners migrating to more favorable regions. According to data from the Cambridge Bitcoin Electricity Consumption Index (CBECI), China leads the BTC mining sector with 65.08%, with the U.S. and Russia in second and third place respectively at 7.24% and 6.90%.

    As reported by CryptoPotato back in June, the U.S. BTC hash rate rose 78.33% between September 2019 and April 2020. Meanwhile, China has experienced a decline within the same period.

    While Chinese miners are having difficulty paying electricity bills, Russia might legalize BTC mining. Back in September, reports emerged that Russia’s Ministry of Finance was considering authorizing bitcoin mining in the country.

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • Singapore
      Singapore's Biggest Bank Reportedly Launched A Bitcoin Exchange
    • bithumb
      South Korean Bitcoin Exchange Bithumb Reportedly Raided by Police
    • bitcoin_lava_flow_cover
      Bitcoin Miners' Exchange Flow Surges By 270%: Possible Price Dip Incoming?
    Read more on: Bitcoin China Mining

    About The Author

    Anthonia Isichei View more posts by this author

    Anthonia is a fintech writer who has been involved in the crypto space since 2017 covering developments across regulations, adoption, and several other aspects of the Industry. When not neck-deep in the crypto news cycle, Anthonia spends her free time globetrotting and playing video games.

  • bitcoin
    BTC$36,550.00
  • ethereum
    ETH$1,399.96
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    binance
    Bitcoin Editorials
    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!