"Have you seen Waiting for Godot?""I'm in a good fit right now."On May 25, the Inner Mongolia Development and Reform Commission issued the "Eight Measures on Resolutely Combating and Punishing Virtual Currency "Mining" Behaviors (Draft for Comment)", proposing different combating and punitive strategies according to the eight types of objects.A single announcement put all cryptocurrency miners in Inner Mongolia in a dilemma.The Bitcoin miners in Inner Mongolia are struggling and restless, waiting for the policy that is destined to come to fruition.In the end is to go or stay? This is a question that all miners in Inner Mongolia and even the whole country are paying close attention to......In fact, not only miners, but the entire industry is trembling with the tightening of supervision."I'm in a good fit right now."
On May 25, the Inner Mongolia Development and Reform Commission issued the "Eight Measures on Resolutely Combating and Punishing Virtual Currency "Mining" Behaviors (Draft for Comment)", proposing different combating and punitive strategies according to the eight types of objects.
In fact, not only miners, but the entire industry is trembling with the tightening of supervision.On February 25 this year, the Development and Reform Commission of the Inner Mongolia Autonomous Region issued "Several Guarantee Measures for Ensuring the Completion of Dual-Control Energy Consumption Targets in the 14th Five-Year Plan (Draft for Comments)". The "Draft for Comments" shows that in order to complete the The "14th Five-Year Plan" energy consumption dual control target task will comprehensively clean up and shut down virtual currency mining projects, and all exit before the end of April 2021, and proposes to strictly prohibit new virtual currency mining projects.Subsequent "strikes" followed.On the evening of May 18, the official account of the People’s Bank of China reprinted a joint announcement issued by the Payment and Clearing Association of China, the Bank of China Association and the Mutual Finance Association, clarifying that financial institutions and payment institutions are not allowed to conduct business related to virtual currency.On the evening of May 18, the official account of the People’s Bank of China reprinted a joint announcement issued by the Payment and Clearing Association of China, the Bank of China Association and the Mutual Finance Association, clarifying that financial institutions and payment institutions are not allowed to conduct business related to virtual currency.Immediately afterwards, on May 21, the Financial Affairs Commission of the State Council held the 51st meeting, with a special emphasis on "cracking down on bitcoin mining and trading, and resolutely preventing the transfer of individual risks to the social field."Since then, on May 25, the Inner Mongolia Development and Reform Commission issued "Eight Measures on Resolutely Combating and Punishing Virtual Currency "Mining" Behaviors (Draft for Comments)", proposing different combating and punitive strategies according to the eight types of objects, and the time for soliciting opinions is 2021 May 25 to June 1, 2021.The "Draft for Opinions" pointed out that for telecommunications companies, Internet companies and other entities that have virtual currency "mining", in accordance with the relevant provisions of the "Regulations on Telecommunications of the People's Republic of China", the competent department shall revoke the value-added telecommunications business license in accordance with the law and seriously investigate the responsibility.Relevant enterprises and relevant personnel who have virtual currency "mining" activities shall be included in the blacklist of dishonesty according to relevant regulations; public officials who take advantage of their positions to participate in virtual currency "mining" or provide them with convenience and protection shall all be transferred Disciplinary inspection and supervision organs.With the gradual increase in supervision, other mining-related companies in the cryptocurrency industry have also felt "dangerous".On May 20, Dory Creek, a wholly-owned subsidiary of the mining company BitDeer, announced that it will invest in the construction of a cryptocurrency mine in Texas, USA, together with BIT Mining.On the morning of May 19, the Inner Mongolia Development and Reform Commission also issued an announcement to set up a reporting platform for virtual currency "mining" companies to fully accept complaints and reports about virtual currency "mining" companies.。Relevant enterprises and relevant personnel who have virtual currency "mining" activities shall be included in the blacklist of dishonesty according to relevant regulations; public officials who take advantage of their positions to participate in virtual currency "mining" or provide them with convenience and protection shall all be transferred Disciplinary inspection and supervision organs.During the bull market this year, the official price of an Ant S19 was 36,500 yuan, but its off-market price has been as high as 60,000 to 70,000 yuan.However, after the policy was promulgated, the off-market price of S19 dropped to 40,000 to 50,000 yuan, and Bitmain’s original Dalit branch in Inner Mongolia has also been cancelled.In the face of the surging regulatory tide, cryptocurrency practitioners across the country are trembling.On May 20, Dory Creek, a wholly-owned subsidiary of the mining company BitDeer, announced that it will invest in the construction of a cryptocurrency mine in Texas, USA, together with BIT Mining.According to a person close to Bitmain told Deeplink Finance, many employees of Bitmain are currently on “holiday”. One of the reasons is that with the approach of regulation, the market demand for mining machines has dropped sharply.
If we count the provinces most suitable for mining in China, we cannot avoid Xinjiang, Inner Mongolia, Gansu, Yunnan, Guizhou, and Sichuan anyway.In the face of the surging regulatory tide, cryptocurrency practitioners across the country are trembling.The second largest cryptocurrency mining area is in Inner Mongolia, which is rich in coal mine resources. The reason why it can attract a large number of miners to settle in is because of its large area and sparse population. For large mines that occupy a large area and rely heavily on heat dissipation As far as the field is concerned, if you choose to mine in these areas, you can rent land at a cheaper price, and the higher latitude, lower temperature, and smooth traffic will allow the mining machine to obtain high-quality heat dissipation conditions and make mining more convenient. machine migration.In addition, a more important reason is that Xinjiang, Inner Mongolia and other places have developed coal mine resources, which makes the local thermal power price far lower than other provinces.Therefore, cheap power supply, favorable geographical conditions for building factories and heat dissipation, and local open policies made Inner Mongolia an ideal place for mine construction.Therefore, cheap power supply, favorable geographical conditions for building factories and heat dissipation, and local open policies made Inner Mongolia an ideal place for mine construction.According to the Bitcoin Power Consumption Index compiled by Cambridge University, China currently accounts for about 65% of all Bitcoin mining computing power in the world, with Inner Mongolia alone accounting for 8%, while the United States only accounts for 7.2%.The Bitcoin computing power of Inner Mongolia alone exceeds that of the United States.However, the good times didn't last long. Starting from this year, starting from Inner Mongolia, including Xinjiang, Sichuan and other provinces where mining farms gather all over the country, they have launched a crackdown on cryptocurrency mining.Among them, Inner Mongolia is the worst, and its intensity is unprecedented.It is precisely because of this that the series of regulatory measures introduced by Inner Mongolia this time is also known as "the strongest regulation in history."There are many reasons why the Inner Mongolia government will change its previous attitude and start drastic regulation of cryptocurrency mining.According to media reports, during the peak period, the mines in Ordos could dig out more than 100,000 bitcoins a year.Among them, Inner Mongolia is the worst, and its intensity is unprecedented.It is worth noting that in September last year, according to data from the "China Environment News", Inner Mongolia, which accounted for 1.7% of the country's total economic output, consumed 5.2% of the country's energy. The economic value created does not match the energy consumed, which makes Inner Mongolia fall into an energy dilemma.In order to solve this problem and respond to the call for carbon neutrality, the Inner Mongolian government held a meeting in February this year and decided to reduce energy consumption per unit of regional GDP in Inner Mongolia by 3%, and control energy consumption within 5 million tons of standard coal.Since it is necessary to save energy and reduce emissions, the controversial cryptocurrency mines, which are mainly mining and consume a lot of power, are naturally the first to bear the brunt.There are many reasons why the Inner Mongolia government will change its previous attitude and start drastic regulation of cryptocurrency mining.These concepts are the commitments made by China in its speech at the United Nations General Assembly in 2020. In this proposal, the goal is to reduce the growth of domestic energy consumption to about 1.9% in 2021.
"At present, the detailed policy has not yet been implemented, so we are still waiting and watching." Xiaofeng, a miner in Xinjiang, told Deep Chain Finance, "In the general direction, we still embrace supervision.""At present, the detailed policy has not yet been implemented, so we are still waiting and watching." Xiaofeng, a miner in Xinjiang, told Deep Chain Finance, "In the general direction, we still embrace supervision."Some are waiting, but many miners, including miner Luping, are ready to leave."As soon as I saw this news, I felt my scalp numb and dizzy, and it took me a long time to recover." Lu Ping told Shenlian Finance, "Then I turned on my phone and started looking for mining sites in Xinjiang and Sichuan. contact information of friends."In fact, since the Inner Mongolian government released the "Several Guarantee Measures for Ensuring the Completion of Dual Control of Energy Consumption in the 14th Five-Year Plan" (Draft for Comment) on February 25 this year, the miners in Inner Mongolia have started to leave intermittently."Dismantle the wiring, repackage, contact the site, entrust the transportation, and then unload and install the machine."It's like moving a house that you've lived in for more than ten years. It's not complicated, but it's cumbersome.As far as Xiaofeng is concerned, although Xinjiang has not yet issued corresponding documents, her lips are dead and her teeth are cold, and Xiaofeng is also considering the way out.There are not a few miners waiting for their boots to land, and Fenqiang, a miner who still has no choice to leave in Inner Mongolia, is also waiting.Some are waiting, but many miners, including miner Luping, are ready to leave."As soon as I saw this news, I felt my scalp numb and dizzy, and it took me a long time to recover." Lu Ping told Shenlian Finance, "Then I turned on my phone and started looking for mining sites in Xinjiang and Sichuan. contact information of friends."In fact, since the Inner Mongolian government released the "Several Guarantee Measures for Ensuring the Completion of Dual Control of Energy Consumption in the 14th Five-Year Plan" (Draft for Comment) on February 25 this year, the miners in Inner Mongolia have started to leave intermittently.It's like moving a house that you've lived in for more than ten years. It's not complicated, but it's cumbersome.It is worth noting that one of the contents of the meeting was that State Grid Sichuan Electric Power Company and Sichuan Energy Investment Group respectively reported the situation and related suggestions of virtual currency "mining" in their respective supply areas, and shut down virtual currency "mining" Analysis of the impact of abandoning water and electricity in Sichuan this year.In Xiaofeng's mine, many customers have already asked her about the situation.But in Fenqiang's view, Sichuan is likely to "follow the example" of Inner Mongolia in the end.In Xiaofeng's view, the worst plan is to go to sea, and this is also one of Fenqiang's plans.4 "Reform or go to sea?"
Going to sea is easier said than done.Earlier, during the bear market stage in 2019, due to the low price of Bitcoin and high electricity costs at that time, the mining income was low. Many miners choose to go to Iran, Russia and other countries to continue mining.However, on the one hand, mining machines have a long way to go to sea and are in a foreign land, so it is difficult for miners to effectively protect their property.According to media reports, for example, in Iran, the Islamic Revolutionary Guard Corps, a branch of its army, has great influence on the border. They have the right to decide which goods can enter Iran and which goods cannot enter. Mining machines may be detained or confiscated at the border. Although some logistics companies may have insurance policies to cover losses, they can only obtain compensation through decree, but there is no way to get the mining machines back."In addition, there is not such a large volume overseas that can eat up China's computing power." Xiaofeng told Deep Chain Finance.As mentioned above, the current Bitcoin computing power in Inner Mongolia exceeds that of the United States, which means that if Chinese miners go overseas to the United States, they need to build enough infrastructure such as substations .It takes a long time before and after, and it also tests the cash flow of the mine.However, on the one hand, mining machines have a long way to go to sea and are in a foreign land, so it is difficult for miners to effectively protect their property.In addition to going to sea, another aspect is to strictly follow local regulations.Previously, in order to obtain cheaper electricity prices, many mining farms have been playing side-by-side. Some have packaged themselves as "cloud computing" infrastructure encouraged by policies, and some are still enjoying preferential policies in disguise.As mentioned above, the current Bitcoin computing power in Inner Mongolia exceeds that of the United States, which means that if Chinese miners go overseas to the United States, they need to build enough infrastructure such as substations .In addition, it is more important to look for clean energy.At present, although thermal power is stable, it is seriously polluted. Although hydropower is abundant, there is a long dry season every year. Photovoltaic and wind power are unstable and difficult to store.It takes a long time before and after, and it also tests the cash flow of the mine. 
