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China will impose a ban on crypto mining from tomorrow in Inner Mongolia. The crypto miners will get one more day to comply with the order to shut down or move their mining rigs out of the province.
The decision has been taken to keep China’s vision to achieve carbon neutrality by 2060. The crypto mining business is highly polluting and the returns from it are low in regions like Inner Mongolia where the miners use coal-powered electricity.
With strict regulations in place, many of the Chinese crypto miners are attempting to use green energy while others are leaving the country. The crypto miners in China represent nearly 65% of the global hash rate.
What Will Crypto Miners do Next?
According to Arthur Lee, founder of SAI, a clean energy technology company, Bitcoin miners can use renewable energy to reduce carbon emissions. The Sichuan and Yunnan province of China has abundant hydropower resources. The Bitcoin miners can migrate to these provinces during the monsoon season and take advantage of the abundant and cheap electricity.
China generates a considerable income from crypto mining, and relocating to such provinces would certainly be a wise decision.
The other option is the so-called cooling technique, in which liquid is used than fans to keep the mining rigs cool. The liquid used to cool the heat transmitted from the rigs can be reused for public heating demands or produce green electricity. Eliminating the user of electricity generated by thermal power.
Having said hydropower is not a long-term solution for crypto miners, as they will have to move after the monsoon season is over. It is also not easy to reallocate the rigs as it may cause damage to the equipment and a halt to the operation for some time. The use of local energy sources, primarily coal will also fail to solve the purpose.
Last but not least option would be for the crypto miners to move out of China. This may sound good, but is not a cure for it as running the farms overseas means following the local laws and regulations.