Musk’s “backtracking” only because of the coveted computing power industry? China’s share of clean energy is not low!

Chinese entrepreneurs: the arithmetic industry may move from China to the United States

Musk's "backtracking" only because of the coveted computing power industry? China's share of clean energy is not low!

On the 25th, Musk tweeted that he spoke with North American bitcoin miners who promised to release current and planned renewable energy makes and encouraged the industry to follow through with implementation. He hinted that this is a potential hope for bitcoin.

Later, MicroStrategy CEO Michael Saylor retweeted the tweet, stating that Musk met with a group of North American miner companies and that the miners agreed to form a Bitcoin Mining Council (BMC), which would increase transparency in energy consumption and accelerate sustainability activities worldwide.

These mining companies include Argo Blockchain, Blockcap, Core Scientific, Galaxy Digital, Hive Blockchain, Hut 8 Mining, Marathon Digital Holdings and Riot Blockchain, among others.

So, a battle begins as North American mining companies try to seize leadership of the global bitcoin arithmetic industry?

Chinese Entrepreneurs: The Arithmetic Industry May Move From China to the US
As Musk “went back on his word,” Xiong Yue, president of the Coin Trust Institute, said, “What should be a concern is not the nebulous issue of how many percent of the arithmetic power is in China and who gets the bookkeeping rights, these are all results. My concern is that in terms of the rules, Musk has made it bad, and, very bad. Bitcoin will continue to be robust, of course, but there will be a lot of people in Inner Mongolia, Xinjiang, Yunnan, Sichuan, etc. who will lose their jobs because he moved the needle.”

Bitcoin William said, “Where is Musk’s lack of understanding? At the time, he was spraying Bitcoin mining for high energy consumption and arithmetic concentration, and the only thing he was pointing at was Chinese miners, trying to get mining machines and arithmetic into their own hands and those of the United States. This wave of arithmetic migration should happen a little faster than expected.”

Cai Hengjin, a Wuhan University PhD director and EveriToken public chain initiator and chief scientist, said, “Where are the Chinese mining companies with the largest arithmetic power when Musk forms the Bitcoin Mining Committee? After handing over the pricing power do we just hand over the mining power?”

Former Jianyan Technology Co-Chairman Jianping Kong, on the other hand, said, “Bitcoin pricing power is already a competition between decentralized exchanges and U.S. exchanges, and mainland China has completely lost pricing power, and the next North American mining companies with Musk as the node are fighting for the right to keep track of mining in the Bitcoin world, and without a better policy environment in mainland China, the mainland’s The last good card will also fall by the wayside, quite unfortunately.”

It’s not hard to imagine that the entire bitcoin computing power market is going through a big change after Musk’s flurry of fancy tweets. But to some extent, with Musk’s change of heart, there is no question that the global bitcoin and bitcoin arithmetic industries are benefiting.

Clean energy, hydropower, wind and solar, China accounts for no less
The discussion of bitcoin mining shifting from fossil to clean energy is not “out of nowhere”.

In fact, more than 120 countries and 2/3 of the world’s economies are now part of the “carbon neutral” transition, so it’s not just environmental opinion, the shift from fossil to clean energy for bitcoin mining is almost irreversible. Governments around the world are pushing for “carbon neutral” policies, with 2021 being a particularly prominent year.

In China, on February 25, the Inner Mongolia Autonomous Region announced a complete cleanup and shutdown of virtual currency mining, a precursor to carbon neutral policies in China.

Clean energy is also generally considered renewable (there is also a classification that classifies nuclear energy as clean), while the International Energy Agency classifies hydropower, solar, wind, and biofuels & waste as major renewable resources. And according to data from its 2016 report, the above-mentioned categories of renewable energy can provide roughly 56 times the amount of electricity consumed by the Bitcoin network.

Previously, hydropower was the clean energy source with the largest reserves, mainly located in China, South America, North America and other regions with abundant water resources.

Statistics provided by Coinprint show that during periods of abundant water, Sichuan accounts for 50% of the country’s mining electricity consumption and Yunnan 25%. This means that about 75% of the mining power during the high water period is hydropower clean energy. During the low water period, Xinjiang accounts for 50% of the country’s dredging electricity and Inner Mongolia accounts for about 30% (previous data), which means that the percentage of hydropower clean energy during the low water period is at 20%.

Taken together, about 65% of China’s dredging energy comes from clean energy, and this proportion will continue to increase.

Outside of hydropower, solar and wind power make up the bulk of the total, but there are some problems with these two sources, such as high costs. But recently, payments giant Square and asset management firm Ark Invest mentioned in a joint study that the production costs of solar and wind have dropped significantly over the past decade, with solar down 90% and wind down 71%. In addition, with the development of battery technology, the intermittent shortfall in supply of wind and solar power will likely be made up.

Thus, it is entirely possible for bitcoin mining to use clean energy, which will even drive the adoption of clean energy globally.

Moreover, clean energy becomes a rather cost-effective option for bitcoin mining, a global energy arbitrage. Because the cost of these energy sources is coming down, here is the price per kilowatt of renewable energy. As you can see, clean energy is already even less expensive than fossil energy.

From a policy perspective, a dozen Chinese provinces have published their 14th Five-Year Energy Plans, which clearly state that they want to boost the scale of PV. Zhejiang, Jiangsu and other places can raise the installed capacity by more than half by 2025. The National Development and Reform Commission, the Energy Research Institute and other institutions predict that by 2050, China’s nearly four layers of electricity consumption for photovoltaic. Thus, the supply of these two clean energy sources in China is not low in the future.

Thus, there is reason to believe that in China, bitcoin mining can achieve the conversion from fossil to clean energy.

Overseas, this process is accelerating, for example, in April 2021, a bitcoin mining company called Gryphon Digital Mining announced that its bitcoin mining operations will use 100% clean energy. At that point, there were at least three global companies claiming to be mining bitcoin using clean energy, including publicly traded companies like ArgoBlockchain (UK) and Neptune Digital Assets (Canada).

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/musks-backtracking-only-because-of-the-coveted-computing-power-industry-chinas-share-of-clean-energy-is-not-low/
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