Will there be a major impact from the full-scale retirement of bitcoin mining in many places? How to solve the problem of high energy consumption and pollution?

Recently, a “Inner Mongolia set up virtual currency mining enterprise reporting platform” news on weibo hot search.

Will there be a major impact from the full-scale retirement of bitcoin mining in many places? How to solve the problem of high energy consumption and pollution?

In fact, the cryptocurrency mining has always been a concern, this time for the “mining” enterprises to retire, Inner Mongolia is not the first province, before Xinjiang and other places have introduced similar policies.

Many people are concerned that many places may introduce policies that exclude mining in the future due to the influence of “carbon neutrality” and other important international climate issues in recent years. As we know, the Bitcoin system relies on miners to generate consensus to maintain the security and stability of the system.

If mining is banned, wouldn’t that be a “pill”? So will the policies in Inner Mongolia and Xinjiang have a significant impact on bitcoin?

01
Inner Mongolia, Xinjiang, etc.
Why do you want to exclude and retire “mining” companies?

Since cryptocurrency workload is actually proven by the consumption of “energy”, mining farms usually gather in areas with abundant power resources and low electricity prices to reduce costs and ensure a higher input-output ratio.

The current thermal power resource-rich areas are Inner Mongolia and Xinjiang, hydropower-rich areas are Yunnan, Sichuan, Guizhou and other places, these places can be called the “mining mecca”.

Inner Mongolia and Xinjiang are mainly thermal power generation, which runs counter to environmental issues including carbon neutrality. Thermal power generation is a well-known “producer” of waste water, gas and sludge, and despite the layers of treatment for environmental protection, it still discharges some pollutants that cannot be filtered and treated.

In 2020, at the United Nations General Assembly, China pledged to peak its carbon emissions by 2030 and to achieve carbon neutrality by 2060. This goal brings pressure to these places, and the electric tiger “mine” is naturally the focus of regulation.

From Inner Mongolia or Xinjiang in the past announcement, we can easily find that many mines in order to get low electricity prices, has been playing ball, packaged themselves as a policy to encourage the “cloud computing” infrastructure, and even a number of parts have been disguised to enjoy policy concessions.

Such illegal mines not only do not bring economic benefits to the local area, but also secretly take away resources and enjoy supportive policies, which is the reason why a Inner Mongolia and Xinjiang had to rectify and clear some of the mines, which partly started as early as 2018.

Compared to thermal power plants, Yunnan, Sichuan, Guizhou and other places in the “abundant water” before the arrival of the peak of the conflict does face electricity, so even environmentally friendly hydropower, there are “eaten” time.

Now the carbon neutral environmental pressure combined with past violations of electricity, electricity peak situation, the domestic thermal power mine follow-up is really not very optimistic, hydropower pressure is slightly less, but the follow-up policy is not yet clear.

02
A large number of mining farms are being retired
Will it affect the stability of the bitcoin system?

A month ago, Wu Jihan, the richest man in the mining industry, said at the second Bitcoin Fawn 421 Water Festival and Mining Ecology Conference that the impact of carbon neutrality on the mining industry is a problem that the whole industry needs to face, and he said that this is a limitation of the mining industry, and that people should not take a chance on this matter.

Also, bitcoin mining is facing questions in the country, and if miners continue to take non-clean energy sources, they will be at a disadvantage in the development ecology within our country.

So, if, as Wu Jihan says, a large number of domestic mining sites shut down because of the environmental problems caused by the use of “non-clean energy”, will that have a significant impact on bitcoin?

The first thing you have to deal with when a lot of mining farms shut down is the issue of computing power. But the impact is actually very small, because Bitcoin is already a global public facility with nodes all over the world, and as a peer-to-peer distributed system, its biggest feature is that it is “single point of failure resistant”.

However, some people are concerned that in extreme cases, if the computing power of a country suddenly shuts down, the computing power drops dramatically, and Bitcoin’s difficulty adjustment mechanism doesn’t adjust as quickly, the time to get out of the block will be extended.

However, this fear may be superfluous, as a significant drop in computing power means that other miners will have a chance, as this is the time to get into mining for more revenue, and some of the older mining machines that are close to being phased out due to their “energy consumption ratio” may be back on the shelves.

In other words, if the miners stop mining here, they will soon be replaced by miners from other regions. This is also considered a game between miners under the economic model designed by Bitcoin.

Therefore, even if all the mines in Xinjiang and Inner Mongolia were shut down, it would not have a significant impact on the stability of the Bitcoin system, let alone on the market. Besides, although mining uses a lot of “non-clean energy”, the use of “clean energy” is much more, in the future long-term environmental factors to promote, bitcoin mining is bound to shift to the use of mainly clean energy up.

A lot of mining people say that for the time being not too worried about the domestic hydropower problem, because many local hydropower mining or local “investment” to the “abundant water” surplus hydropower energy to make full use of the economic benefits is helpful.

In fact, many “mining” activities are using the original surplus, “wasted” energy. For example, as Reuters just recently reported, North American bitcoin miners are working with oil drillers to use excess natural gas to mine bitcoin.

Since oil and natural gas usually come from the same well, when the drillers extract the oil, the natural gas is wasted in the combustion process, storing the value of the “excess surplus energy” that would otherwise go to waste in many areas.

Wu Jihan also said that miners need to think long-term, and miners need to find clean energy to mine. The blockchain is also seeking solutions internally. For example, the establishment of a blockchain traceability mechanism to distinguish clean energy mining products, in the context of future institutional entry, even in the case of clean energy, the price of bitcoin will be better.

03
Can the problem of mining polluting the environment be solved?

As stated earlier, clean energy seems to be an imperative. Musk has slammed Bitcoin’s environmental pollution problem more than once, and recently tweeted that Bitcoin mining is starting to use more energy than a medium-sized country.

币世界-多地全面清退比特币挖矿,会产生重大影响吗?高能耗、污染问题何解?

It is clear that the crazy use of energy by bitcoin mining is not just a domestic concern, it is already an international problem, so when it comes to this environmental problem is it that easy to be solved?

In addition to Wu Jihan’s “miners should be prepared to look for clean energy mining in the long term” and establish a blockchain traceback mechanism to distinguish clean energy mining products, Musk has also proposed his own solution.

He tweeted that an audit of large bitcoin miners’ use of renewable energy might help alleviate concerns that cryptocurrencies are bad for the environment, a problem that could be easily solved if the top 10 mining organization companies published their audited renewable energy consumption.

Of course, there are many people (like V-God) who say that Bitcoin’s energy consumption is a major flaw and that a better consensus mechanism (such as a non-POS mechanism) should be chosen instead, just like Ether’s plan to move from a POW consensus mechanism to a POS mechanism that does not rely on energy consumption. Of course, the POS mechanism is not perfect, so the POW and POS debate has been going on.

In fact, human environmental awareness is constantly strengthening, and technology is constantly advancing, so the problem of mining pollution will no longer be a problem in the future as people propose various governance solutions and continue to pioneer innovation in clean energy.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/will-there-be-a-major-impact-from-the-full-scale-retirement-of-bitcoin-mining-in-many-places-how-to-solve-the-problem-of-high-energy-consumption-and-pollution/
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