The fears that stagnating Bitcoin prices [~$6k-7k] might starve the large Bitcoin miners majority of which are based out of China’s Sichuan province are now hitting the mainstream media. In a surprising move to support large bitcoin miners Chinese govt. is lowering down the electricity costs.
Cheaper Electricity in Sichuan To Support Miners
Mao Shixing, founder of F2pool, in an interview reported that almost 60,000 between 600,000 and 800,000 bitcoin miners had to shut down their operations since mid-November amid stagnating bitcoin price and hashrate across the network. These details were an eye opener to Bitcoin enthusiasts and all hopes relied on possibility of rising prices amid “Bitcoin Halving”. But with just few days left for halving and bulls still not in picture more and more miners might be forces to shut down their operations.
Considering the situation the Chinese govt. is releasing supporting blockchain policies and are planning to lower down the electricity costs in Sichuan province which is also called the bitcoin mining hub. This news was reported by crypto journalist Joseph Young via his twitter handle.
The main reason behind this move is the upcoming rainy season in Sichuan which can enable the local govt. to lower down hydropower produced electricity.
This is optimistic for large bitcoin miners in China, especially in Sichuan.
After halving, if BTC remains in $6~$7k, F2Pool co-founder said there is real risk of more mining machines shutting down.
But, he also said cheaper electricity can protect miners, which is happening. https://t.co/HDjYC56BOk
— Joseph Young (@iamjosephyoung) April 28, 2020
The move will definitely act as a blanket for Bitcoin miners against the risks associated with the stagnating bitcoin prices as bulls still struggle to cash the Bitcoin halving opportunity. The bulls are not in clear advantage and apart from a few events there has not been substantial one sided scenario for bitcoin bulls. Recently, large on-chain Bitcoin whale movements were reported indicating a sell off might be around the corner leading to more anxiety in the community.
Do you think this move by Chinese govt. will impact Bitcoin prices?