In this case, the miners feel that there is still a flood season and they can slowly prepare. Some people even plan to stop digging after the flood season. However, I did not expect that the enforcement of this wave of supervision would be so strong that it was far beyond imagination. Even the formalized consumption parks would be cut off across the board. Many owners of mines that had just started production this year may even lose their money. The madness and fragility of the currency circle have been demonstrated several times

For example, during this round of intensive regulatory vociferations, Ethereum, Litecoin, and Dogecoin all fell by about 50%, and Bitcoin also dropped from nearly April this year. It fell more than 50% from its record high of $65,000. Another example is that in September 2018, the currency circle also plummeted after a wave of gains. Mainstream virtual currencies generally fell by more than 70%, and some "air coins" with the goal of cutting leeks even fell by more than 90%.

“At present, the scale of virtual currencies entering the trading market is limited, which can easily create an illusion for investors and can easily be influenced and controlled by a small number of institutional investors or individuals. (And) it is not Few investors with the mentality of getting rich overnight will increase their trading leverage and face huge risks when prices fluctuate greatly. "Dong Ximiao analyzed that in addition to market risks and transaction risks, there are also technical risks and compliance risks. Moreover, there have been signs of this happening in Sichuan for a long time

On May 21, the Financial Stability and Development Committee of the State Council held its 51st meeting, which clearly proposed to crack down on Bitcoin mining and trading. In late May, Inner Mongolia, Sichuan and other places held symposiums on virtual currency mining to strengthen the crackdown on related behaviors. On May 25, the Inner Mongolia Autonomous Region Development and Reform Commission issued the "Eight Measures on Resolutely Combating and Punishing Virtual Currency "Mining" Behavior (Draft for Comment)."

On June 9, the Qinghai Provincial Department of Industry and Information Technology issued the "Notice on Comprehensive Shutdown of Virtual Currency "Mining" Projects", requiring clean-up and rectification. All regions are strictly prohibited from establishing or approving various virtual currency "mining" projects, and all existing virtual currency "mining" projects are completely shut down. At the same time, we must resolutely investigate and correct project entities that initiate projects in the name of big data, supercomputing centers, etc. but engage in virtual currency “mining”.

On June 12, officials from the Yunnan Provincial Energy Bureau confirmed that in accordance with the requirements of the notice, all electricity departments were promptly organized to carry out joint inspections, and the cleanup and rectification of the electricity consumption of Bitcoin mining enterprises was completed by the end of June this year, and serious investigation and punishment were carried out. Bitcoin mining companies rely on power generation companies, use electricity privately without permission, evade national power transmission and distribution fees and funds, and make additional profits. Once discovered, the power supply will be suspended immediately; power generation companies will be seriously investigated and punished for using power without permission. It is an illegal act to secretly supply power to Bitcoin mining companies to seek illegitimate benefits; seriously investigate and deal with potential safety hazards in the use of electricity by Bitcoin mining companies, and once discovered, order them to be shut down and rectified immediately. Sichuan begins to shut down mines

High-power-consuming digital currency mining has not substantially promoted the real economy. It has also increased overall power consumption and made it more difficult to reach carbon peak, so it was shut down. The advantages of the mine clearly outweigh the disadvantages and can ensure that the strategic goals of carbon peaking and carbon neutrality are achieved. Some people would say that the idle water energy in Sichuan and the idle thermal energy in Inner Mongolia are also a waste. It is better to use them for mining and monetization in the mines.

They actually don’t know that China’s UHV transmission technology is very mature. It can transmit electricity from the energy-surplus western regions to the energy-deficient eastern regions. The loss rate during transmission is very low, so there is no need to use it anymore. The argument of “waste energy reuse” comes to justify mining.