The year 2020 has been something else for the world economy as well as for countries that have been fighting for the global conquest. While the rest of the financial solutions have been struggling to fight through the current economic dip, the cryptocurrency industry has experienced a breakthrough.
Countries from around the globe are up for grabs when it comes to crypto-blockchain technology. China in particular has launched the testing phase of its digital-Yuan and aims to go fiat-free in a decade.
Last month, the President of China, Xi Jinping made an announcement to the entire world. The announcement was to declare that is calling for a ‘Green Revolution’. This means that it will become a Carbon neutral country by the end of 2060.
After the announcement, many economic and crypto analysts have had their fingers crossed. As per them, if China is able to initiate their plan successfully, they will be able to remove the ‘biggest-polluter’ status from its profile. This would also play a significant role in improving the global ecosystem.
Most important of all, this change can also result in shaking up the demographics of the Bitcoin’s (BTC) mining industry in a negative way.
Siuchan, which is the Southern province of China, is currently the most prominent mining hub with an abundance of hydroelectricity. Even with this, the electricity in this sector is cheap only in the raining season, which lasts between May and September.
Once the rainy season is over, the miners from this sector move to Inner Mongolia and Xinjiang, which generate more than 40% of the total hash rate for Bitcoin (BTC). However, the most down-side to these zones is that both Xinjiang and Mongolia have to rely on non-renewable power sources such as coal.
Therefore, in order to achieve its goal of becoming a Carbon-Neutral country, China has to get rid of the non-renewable energy sources. As a result, the usage of sources such as coal and fuel would be zeroed out and the miners from Mongolia and Xinjiang would be unable to do mining.