Bitcoin mining is illegal ? Power companies responded: there was a mistake

Since the announcement of the closure of the bitcoin exchange in September, the major exchanges have stopped trading at home and chose to go to the sea. Although the previous regulators have made clear, only by comparing bitcoin transactions, rather than bitcoin, but in the bitcoin industry chain production bitcoin bitcoin mining people still have their own concerns. 11 14 April in the coin ring and circulated on the Internet a "ban on bitcoin production of the emergency notice", let the coin circle again startled waves.

The paper shows that the State Grid Corporation of Sichuan Ganzi Electric Power Co. Ltd. Danba county power supply branch informed the grid of small hydropower, bitcoin production belongs to the illegal operation, the power grid power plant also belongs to the illegal business behavior, the date of receipt of such notice "to stop all bitcoin production" grid power plant to continue illegal transfer of power, will be "network punishment".

Is bitcoin production illegal? Why did the electric power company issue such notice suddenly? The future can continue to dig? With this question, Caixin reporter called the aforementioned Danba county power supply branch responsible person, the other said: the notification is true, but the statement is wrong, the company departments in dealing with large area power rationing problems hastily written, rather than the company officially red head file. It is not intended to bitcoin mining for illegal business, but not because of some small hydropower stations in local people's livelihood priority to meet the demand for electricity, in violation of the purchase contract with the company requirements.

"Our power sector is only an enterprise unit, not a national administrative organ, nor is it the right to determine whether bitcoin production is illegal or not. There may be a lot of ambiguities in the presentation of the document." The person in charge told Caixin reporters.

"Mining", refers to the production process of bitcoin, namely the use of the computational capability of a hash collision, so as to obtain the reward system of bitcoin. The days of using a computer to dig out bitcoin have gone forever. At present, it is mainly produced by multiple ore mines and combined ore pools. With abundant and cheap power resources, China has long been a big producer of bitcoin. Most of the mines are concentrated in areas rich in hydropower and wind power resources, such as Sichuan, Tibet and Inner Mongolia.

The person in charge said that Danba county power supply company has not yet been networked, can only rely on local small hydropower to power supply. At present, the company has access to 9 small hydropower stations, of which 6 power stations are also for bitcoin mine power supply. However, in winter every year, Danba enters the dry season, resulting in insufficient power supply. "In order to ensure the use of electricity, power rationing in the evening, stopped a large number of rural areas, there are many customer complaints, some departments on the anxious, this notice is made in a hurry."

Two days after the notice issued under the company in November 15th, Danba county power supply branch called the small hydropower station is a forum in Danba County in the winter supply power shortage briefly; two is to require the use of power station and fulfill the grid protocol, give priority to the county power supply to protect the livelihood of the local power, not illegal transfer of electricity supply elsewhere, otherwise it will constitute a breach of contract.

"We reached an agreement with grid connected power on the spot, and they said that the first time to ensure the livelihood of the people in the dry season in winter, this matter was corrected in second days." The foregoing person expresses.

But it is worth mentioning that, in the strict sense, the aforementioned 6 small hydropower stations do not have the ability to provide power for the mine. It is understood that the power generation, power supply, are required to obtain the corresponding qualification, and 6 small hydropower stations do not have the power supply business license, can only generate electricity, can not sell electricity. But this requirement has not been strictly implemented, because Danba County in the period of abundant water power, and without networking, so the county power station simply can not accept so much". This is also a common phenomenon in the domestic mine field, although the annual high-speed operation of mining machines will consume a lot of electricity, but the use of more "abandon water and abandon electricity", that is, a large amount of surplus electricity.

"Because only the price of water and electricity can be reduced, and the quality of the electricity in the bitcoin mines is not so high."." A bitcoin mine in Danba County, told reporters that the new wealth, the cost of electricity bitcoin mining in about 0.3 yuan / kwh. The power company executives said that the local small power plant in Danba for the power supply company sales price of 0.18 yuan / kwh. Usually, when the mines enter the dry season in Sichuan, they will be relocated to Inner Mongolia to choose thermal power generation. At present, the average cost of digging a bitcoin is probably less than 20 thousand yuan, of which 15 thousand yuan is the cost of electricity.

Previously, Caixin has China is able to continue mining for confirmation, then close to the regulators have said there is no prohibition of mining plan. However, according to Caixin reporter, some mining people also have the idea of going to sea, the destination includes Russia, Japan, Mongolia and Southeast Asia and other countries and regions. According to the Russian news agency reported that the Russian block chain virtual currency and block chain alliance (RACIB) chairman Yuri Pripachkin said last week, received 40 applications from the EU countries and Chinese companies and individual investors, hoping to open mines in russia.