Cheap BTC mining will likely come to an end in Inner Mongolia as bTC mining firms have been put on notice that the electricity subsidies could disappear and will raise the rates by one-third so let’s find more in the Bitcoin news today.
The price of electricity in Inner Mongolia is quite low for crypto miners and the government is now trying to remove the subsidies which will increase the price by more than one-third. The price will remain low for international standards but higher than in other parts of China for example. The Inner Mongolia Department of Industry and Information Technology threatened to remove the electricity subsidies for all crypto mining companies so the cheap BTC mining will come to an end as the rates will be increased by one third.
The department issued a notice for the Inner Mongolia Electric Power Group saying that 21 of 30 companies visited for inspection in 2019 didn’t meet the qualifications to get the rates they can get from participating in the Inner Mongolia Electric Power Multilateral Trading Market as per the reports. This region in China is the country’s third-largest region in terms of area and it had quite the ups and downs in the relationship with crypto miners. Some people in the local government saw cryptocurrency as a way to bring money into the economy and while Inner Mongolia is quite rich in resources, its geographical region can limit the growth.
The local government had given Bitmain and other crypto mining farms access to 30% off the standard price of electricity via the trading market. This way, Inner Mongolia miners enjoyed low industrial electricity rates in the world. China already has some of the lowest electricity prices without taking into account the subsidies or other incentives. According to the reports, the average kilowatt-hour miners will need to pay hit 3.8 RMB per kilowatt from the average 2-3 RMB/kWh. Some are still competitive internationally which is by far the most that miners pay in the rich part Shichuan where there are heavy rains and an oversupply of power-generating dams so the electricity can cost as low as 0.3 RMB/kWh.
Thanks to the weather however, some miners are seeking alternatives but the cheap power has prevented an exodus so far.
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