If you are in the crypto industry, you might know that China has been considered as the epicenter of Bitcoin mining activities. However, the recent report shows that the city in China, Ya’an which is the world’s bitcoin mining hub, is encouraging blockchain firms to to help utilize the excessive hydropower.

Hydropower - Future of Mining

With the recent report being considered, it is estimated that the city Ya’an in China accounts for more than 50 percent of the Bitcoin network’s computing power. That being said, they have recently issued the first of its public guidance, seeking the blockchain industry to help consume the area’s excessive hydroelectricity and seize the strategic opportunity of the emerging blockchain sector. 

More so, the emphasis has been given to the city to emerge into a high-quality example by utilizing the excessive hydropower and building an impactful blockchain industry hub in China. Nevertheless, blockchain companies using the electricity should come from generated power source connected with the largest utility company, The State Grid Corporation of China. 

"On principle, blockchain companies should construct factories near power plants that have excessive power and are integrated with the State Grid," the guidance says. "For blockchain companies that use electricity privately generated from power plants [without integration to the State Grid] should be rectified in due time.” said State Grid 

The new analysis putting to consider blockchain firms to burn excess hydropower comes with the fact that the electricity in China’s Sichuan region is being wasted every year ahead of the summer rainy season. 

China has been the market leader of mining for a long time. Cheaper resources of electricity make miners profitable even if the price of the Bitcoin crash. With Bitcoin halving edging closer, miners are certainly concerned about their profits as the reward for miners concerning halving cut down from the current 12.5 BTC to 6.25 BTC.