Bitcoin mining in China is creating a greater demand — for electricity
Singapore — Bitcoin mining is so profitable in China that the crypto-currency could fall by half and miners would still make money, according to Bloomberg New Energy Finance (BNEF). Even at the country’s highest regulated electricity tariff, miners can profit from bitcoin as long as it’s worth more than $6,925, BNEF analysts, including Sophie Lu, wrote in a report on Wednesday. The digital currency currently trades at about $13,850, down 29% from its record. Bitcoin’s 1,400% surge last year saw greater demand for electricity to run the computers used in the crypto-currency’s mining. About three-quarters of those machines ended up in China, the world’s largest electricity user, which is now seeking to discourage the practice given a surge in power use in some provinces. "Bitcoin mining under the current price is likely to be profitable under any electricity price regime in China," Lu wrote. Crypto-currency power use is facing more scrutiny, particularly in China, which is concerned t...
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