Tag: University of Cambridge

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SHANGHAI: Energy regulators in China’s Sichuan province will soon meet local power companies to gather information on cryptocurrency mining, an official said, potentially leading to a clampdown in the country’s second-biggest bitcoin production hub.

China’s central government vowed last week to crack down on bitcoin mining and trading, while this week Inner Mongolia, also a major mining centre, proposed measures to root out the business. Such measures are accelerating a shift of mining activities to North America and Central Asia.

An official at the Sichuan Energy Regulatory Office of National Energy Administration told Reuters that Sichuan was not the only province gathering information on cryptomining.

But the official, who is not authorized to speak to the media, declined to say whether Sichuan would announce measures to crack down on the practice following the meeting with power companies. Chinese media reported earlier that Sichuan would hold a seminar on cryptomining on June 2.

Bitcoin and other cryptocurrencies are created or “mined” by high-powered computers competing to solve complex mathematical puzzles in an energy-intensive process that often relies on fossil fuels, particularly coal.

Cryptomining is a big business in China, accounting for over half of global cryptocurrency supply. But the power-hungry business could hinder China in meeting carbon-neutrality goals, according to some analysts.

The annual energy consumption of China’s bitcoin industry is expected to peak in 2024 at about 297 terawatt-hours, exceeding the total power consumption level of Italy and Saudi Arabia in 2016, according to a study recently published in scientific journal Nature Communications.

Sichuan, rich in hydropower resources, is China’s second-biggest bitcoin mining province after Xinjiang, contributing to nearly 10% of China’s hashrate, or computing power, in April, according to data compiled by the University of Cambridge.



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Bitcoin falls below $50,000 as Musk calls energy use ‘insane’, BFSI News, ET BFSI

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By Yakob Peterseil and Dana Hull

Tesla Inc.’s Chief Executive Officer Elon Musk doubled down on his attack on Bitcoin’s energy demands, calling recent consumption trends “insane.”

Musk posted a chart on Twitter from the University of Cambridge showing Bitcoin’s electricity consumption has skyrocketed this year. It’s the second day he’s criticized crypto mining for using fossil fuels and comes after an announcement that Tesla would suspend car purchases using Bitcoin.

The turnaround by one of crypto’s loudest believers took investors by surprise and sent prices tumbling across the board. Bitcoin plunged 10% in early U.S. trading to below $50,000. Exchange operator Coinbase Global Inc. sank 2% in the premarket and other tokens including Ether and Dogecoin slumped.

“Bitcoin is also a manifestation of the value of the internet, and hence it stands to reason that social media and the cult of celebrity has, and will continue to have, an effect on driving demand,” said Stephen Kelso, head of markets at ITI Capital.

Mining the token consumes 66 times more electricity than it did back in late 2015, according to a recent Citigroup Inc. report.

Musk signaled on Wednesday that Tesla might accept other cryptocurrencies if they are less energy intensive, and said the company won’t sell any of its Bitcoin.

It’s unclear what prompted the decision and Musk and Zachary Kirkhorn, Tesla’s chief financial officer, didn’t immediately respond to an email inquiry for comment. Kirkhorn in March added the tongue-in-cheek title “Master of Coin,” according to a regulatory filing.Still, Musk’s tweets raise questions about Bitcoin’s attractiveness as an investment at a time when institutional firms are increasingly vocal about climate change and environmental issues.

“Surely he would have done his diligence prior to accepting Bitcoin?” said Nic Carter, founding partner at Castle Island Ventures, and a leading voice among defenders of Bitcoin’s energy use. “Very odd and confusing to see this quick reversal.”

Musk’s decision in February to buy $1.5 billion in Bitcoin and plan to accept it as a form of payment has been a major catalyst in the crypto bull market. In the eyes of analysts, it helped add legitimacy to the token and usher in new investors.

Musk’s crypto tweets have often been in jest, and his attention toward Dogecoin brought the joke token into the mainstream. He’s quipped about being the “Dogefather” in the past, and tweeted on Tuesday, “Do you want Tesla to accept Doge?”



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