Bitcoin crackdown sends graphics cards prices plummeting in China after Sichuan terminated mining operations

bitcoin mining crackdown, Alibaba Group Holding, blockchain, signals from local regulators, Xinjiang, plans to move overseas

China’s ongoing bitcoin mining crackdown has sent the price of graphics cards plummeting, making the critical component in mining operations much more affordable in the country but leaving miners with fewer places to set up shop.

The Nvidia Quadro P1000 model, an entry-level graphics card, was going for 2,429 yuan (US$376) on a JD.com franchise store on Monday morning, down from a peak of nearly 3,000 yuan in early May, before the State Council’s financial watchdog vowed to crack down on bitcoin mining.

The Asus RTX3060, a more advanced card, was down to 4,699 yuan on Monday from its peak of 13,499 yuan in May on Tmall, operated by JD.com rival Alibaba Group Holding, the owner of the South China Morning Post. The price changes were tracked by e-commerce information provider Manmanbuy.

Graphics cards, typically associated with computers used for video gaming, are an important hardware component for cryptocurrency mining because of the extra processing power they provide for hashing, the complex computations used to create more digital currency and verify transactions on blockchain. The more computational power a miner controls, the better the chances of beating others to adding new blocks to the blockchain and reaping the rewards.

The price plunge comes after southwestern Sichuan province, which relies heavily on hydropower for electricity and had become China’s last bitcoin mining haven, pulled the plug on mining farms on Saturday night. Previous signals from local regulators suggested the province hoped to let miners take advantage of abundant hydropower over the summer.

However, none of China’s major bitcoin mining hubs have been spared from Beijing’s harsh crackdown in the wake of recent price volatility that saw the cryptocurrency’s value plunge by more than 40 per cent in May. Inner Mongolia, Xinjiang and Sichuan had been attractive locations for miners because of their cheap electricity, but they are now hostile environments.

Besides price volatility, the massive amount of electricity needed for the constant hashing that powers blockchains has also become a concern in China, which aims to reach peak carbon emissions by 2030 and become carbon neutral by 2060.

In response to the crackdown, Inner Mongolia and Xinjiang issued notices this month for miners to start shutting down their operations. Sichuan, despite relying on cleaner hydropower instead of coal, ordered a halt to all cryptocurrency mining operations last week. It also told electricity providers to look into their clients to determine whether they are involved in mining operations and report the results before June 25.

Until the crackdown, these three provinces made up a significant portion of the bitcoin network‘s global hash rate, the measure of the network’s computational power. Xinjiang alone accounted for 36 per cent, according to numbers from the Cambridge Bitcoin Electricity Consumption Index from April 2020. As a whole, China controlled 65 per cent of the network’s hash rate at that time.

Now many Chinese miners have either suspended operations entirely or are making plans to move overseas, reducing network activity and impacting bitcoin mining productivity worldwide.

The daily average hash rate for bitcoin dropped to 104 exahash operations per second in the past 24 hours, down from an average of 110 eh/s over the past three days and 120 eh/s for the past week, according to btc.com. In April, the figure was more than 200 eh/s. An exahash is equal to a quintillion hashes.

“It will be a milestone moment to go below 100 eh/s”, said Winston Ma, an adjunct professor at New York University School of Law who has written about technology in China.

Internet Explorer Channel Network
News Related

OTHER NEWS

Daniel Craig's James Bond movies show where the Star Wars sequels went wrong

Big No Time To Die spoilers follow. Watch the film before reading this. They actually went and did it… For a franchise that’s spent most of its six decades adhering ... Read more »

7 reasons why programmers burn out — and 7 ways to prevent it

When Jerry started their job as a junior developer, they couldn’t wait to get to work each morning. And each evening, even after their 10-hour workdays, they’d still feel energized. ... Read more »

Best Buy's Black Friday plans: Talking Tech podcast

Hit play on the player above to hear the podcast and follow along with the transcript below. This transcript was automatically generated, and then edited for clarity in its current ... Read more »

What do 10 million fewer iPhone 13 shipments mean?

While the iPhone 13 range seemingly launched without a hitch in September, a recent Bloomberg report claimed that Apple was expecting to ship 10 million fewer units of its newest ... Read more »

Russian spacecraft returns to Earth with movie crew aboard

A Russian actress and director-producer who spent 12 days aboard the International Space Station returned to Earth early Sunday along with cosmonaut Oleg Novitskiy who had been in space for ... Read more »

Three ways to add quicker access to the Windows 11 Task Manager

© Provided by Windows Central Here are three ways to create quick access to the Task Manager on Windows 11. On Windows 11, you can no longer right-click the Taskbar ... Read more »

HP Omen 15 (2021)

© Provided by TechRadar The HP Omen 15 from the front, displaying a vivd, colorful desktop background HP Omen 15 (2021): Two minute review If you’re looking for a powerful ... Read more »

The pandemic laid bare the deep problems in America - from healthcare to housing. Now the question is: will we do anything about it?

Sophia Garcia, center, with Legacy LA in Boyle Heights joins housing advocates and tenants gathered against eviction of tenants from the 50 unit Tokio Hotel apartments n downtown Los Angeles. ... Read more »

The dark side of wellness: the overlap between spiritual thinking and far-right conspiracies

It was the afternoon of 4 July 2020, and Melissa Rein Lively’s video was about to go viral. A PR executive in Arizona, she already had the appearance of a ... Read more »

Britain's Got Talent Finalist Airlifted To Hospital With 'Severe Injuries' After Stunt Goes Wrong On US Version Of Show

A British escape artist has been airlifted to hospital after his act went drastically wrong during rehearsals for a spin-off of America’s Got Talent. Jonathan Goodwin, who is from Wales, ... Read more »

Should you buy a Lego calendar now or wait for the Black Friday Lego deals?

Some of the most popular Black Friday Lego deals are on the company’s popular advent calendar sets – these are your traditional December day-counters, except instead of chocolate, cheese or ... Read more »

How to enable TPM 2.0 for Windows 11

One of the more controversial things about Windows 11 has been the system requirements that have been put in place, especially with TPM 2.0. Although the basic requirements are not ... Read more »

Sir David Amess: Anti-terror police search London homes

Anti-terror police continued to search properties in London on Sunday after the Met was given more time to question Sir David Amess’ suspected killer. Officers stood guard outside Ali Harbi ... Read more »

How to make an authentic cup of matcha

You’ve no doubt seen matcha on menus in restaurants and coffee shops. Maybe the latte form has even become your go-to drink order. And yet, you’ve probably given little thought ... Read more »

10 leggings celebrities can't stop wearing

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Leggings are a staple in many people’s wardrobes. Whether you’re wearing ... Read more »

Macron condemns 'inexcusable' crackdown on 1961 Algerian protests in Paris

President Emmanuel Macron has described the deadly crackdown by Paris police on a peaceful protest by Algerians as “inexcusable for the Republic”, going further than his predecessors in admitting crimes ... Read more »

Strictly Come Dancing in ‘homophobia and sexism' row over ‘smutty' comments made to male dancers

Strictly Come Dancing has been accused of sexism for allegedly “predatory” comments made by judges towards male dancers. The BBC’s primetime dancing show has reportedly received a higher than usual ... Read more »

David Amess: Father ‘traumatised' after son held over MP's killing

The father of the suspect in the fatal stabbing of Tory MP Sir David Amess has said he feels “traumatised” by his son’s arrest. Police have yet to officially name ... Read more »

China to keep up scrutiny of internet sector

This illustration file picture taken in Paris shows the logo of the US social network application Linkedin on the screen of a tablet. Microsoft on Oct. 14 said it will ... Read more »

Why 3D Pinball needs to come back in Windows 11

The release of Windows 11 has come and gone, but already there’s feature wishes for future releases of the newest Windows upgrade. One in particular from me is for 3D ... Read more »

Everton vs West Ham live stream: how to watch Premier League online from anywhere now

Former Everton boss David Moyes faces his old Merseyside sparring partner Rafa Benitez today in a match that could have significant implications for both managers top six aspirations. Read on ... Read more »

Dolphins vs Jaguars live stream: how to watch NFL online from anywhere

The Jaguars may be the unofficial London team, but the Dolphins are (apparently) the best supported franchise in Blighty, thanks in no small part to the exploits of Ace Ventura. ... Read more »

Susan Sarandon Recalls Final Conversation With Ex-Lover David Bowie: ‘We Said Things That Needed To Be Said'

Susan Sarandon has spoken of how she reconnected with her former lover David Bowie before his death in 2016. The Hollywood star said they both had “things that needed to ... Read more »

Dua Lipa wears a glittering safety pin mini skirt at the Versace & Frieze party

Dua Lipa wore a sequin mini skirt with gold safety-pin detailing and matching neon safety pin earrings as she attended the Versace & Frieze party in London last night (October ... Read more »

Microsoft Windows 11 released: Check if your PC is compatible with the Windows 10 successor

Microsoft released Windows 11 to all eligible devices earlier this month. The new Windows 11 update comes with an all-new design and some key upgrades under the hood. For a ... Read more »

Centralcon's Sha Tin project sees sales pick up as smaller flats attract price-sensitive end users rather than investors

Sales picked up on day two of a residential project launch in Sha Tin as the developer allocated smaller flats that tend to appeal to genuine end users, who are ... Read more »

Valorant: How To Play With a Controller Complete Guide

Valorant is one of the fastest-growing FPS shooters on PC that focuses on using a mouse and keyboard, but can you use a controller to play the game? © GiveMeSport ... Read more »

French fishermen threaten Channel blockade as Macron snubbed by EU countries

Fishermen gut freshly caught fish aboard fishing boat ‘About Time’ while trawling in the English Channel from the Port of Newhaven, East Sussex, U.K – Jason Alden /Bloomberg France’s failure ... Read more »

Robert Webb Labels Strictly Come Dancing ‘Brutal' And ‘Weird': ‘I Was Almost Weeping As It Is So Intense'

Robert Webb labelled Strictly Come Dancing “brutal” and “weird” just a week before he quit the BBC dance show due to health concerns. On Wednesday, the Peep Show star announced ... Read more »

Adam Peaty's girlfriend reacts to Strictly star's ‘almost kiss' with dance partner Katya Jones

The girlfriend of Strictly Come Dancing star Adam Peaty has shared her reaction after he and dance partner Katya Jones supposedly “almost kissed” after their performance last night (Saturday 16 ... Read more »

Why I won't use iPhone 13's MagSafe wallet, even though it's better than ever

There’s nothing more frustrating than misplacing an item; whether it’s the TV remote, your house keys, or your wallet. Spending time searching for the item, or worse, forking out to ... Read more »

We could get a Nothing phone from ex-OnePlus co-founder in 2022

When Carl Pei left the OnePlus company he co-founded, the talk was that a phone would eventually emerge out of his new project – and that now seems likelier than ... Read more »

China's tech regulator says scrutiny of internet industry to deepen as targeted six-month campaign continues

China’s industry regulator plans to deepen scrutiny of the internet industry as it moves into the second half of a six-month campaign launched in July, the agency’s minister told Chinese ... Read more »

Solar panels, hydrogen and wireless charging – Kia has big plans for its EV future

Kia’s electric car portfolio is already pretty strong, with the Soul EV, the eNiro and the new EV6 now available, but the South Korean firm isn’t resting on its laurels. ... Read more »

Can sugarcane shoes help you recover from a marathon? We put them to the test

There’s been a recent surge in popularity of eco-friendly running shoes, with brands including Reebok, Salomon and Brooks all launching shoes made from sustainable and recycled materials. Meanwhile Allbirds – ... Read more »

All you need to know about front-running in crypto trading

Back in the day, when trading on the stock exchanges was a chaotic affair, with transactions taking place between pieces of paper and hoarse screams, a particular intra-day trading tactic, ... Read more »

Shirley Ballas books doctor's appointment after concerned Strictly Come Dancing viewers spot ‘lumps' in her armpit

Shirley Ballas has informed fans she has booked a doctor’s appointment after several Strictly Come Dancing viewers raised concern over “lumps” they’d noticed in her armpit. The head judge, 61, ... Read more »

Yeah Adam Peaty's Girlfriend Noticed Him ‘Almost Kissing' His Strictly Partner Katya Jones After Their Argentine Tango Too

Adam Peaty impressed with his Argentine Tango on Saturday night’s Strictly Come Dancing, but it was the very end of the dance that had everyone talking. As the Olympic swimmer ... Read more »

Matt Hancock loses UN job just four days after his appointment

Matt Hancock pictured in London earlier this year – Mega Matt Hancock has lost his new job at the United Nations just four days after being appointed, following outrage from ... Read more »

Black Friday mattress deals 2021: early sales and our predictions

Black Friday is an excellent time of year to save money on a mattress. Big price drops, extra free gifts, and more offers to choose between than usual make November ... Read more »