- Canaan CEO said crypto mining operations that use clean energy should be spared
- Zhang said that policy uncertainty is pushing domestic miners to move overseas
According to Zhang Nangeng, Canaan Inc. CEO, cryptocurrency mining operations that use renewable energy should be spared.
Canaan is a China-based computer hardware manufacturer. Also, it specializes in Blockchain servers and ASIC microprocessor solutions for use in bitcoin mining.
In addition, the CEO of Canaan said that his business helps make better use of electricity. Also, it contributes to employment and the local economy.
Zhang said,
For-profit miners prefer regions with low electricity prices that indicate oversupply and likely energy waste. Bitcoin miners also help create jobs in impoverished regions and contribute to fiscal coffers.
Let’s note that miners mine Bitcoin and other cryptos using high-powered computers. More so, they use these computers to solve complex mathematical puzzles in an energy-intensive process. This process often relies on fossil fuels, particularly coal.
Zhang’s remarks come after China’s State Council, last month, filed a crackdown on energy-intensive Bitcoin mining.
Further, Zhang said that policy uncertainty is pushing domestic miners to move overseas. And this causes some clients to hold off on placing new orders for mining equipment.
“Beijing’s crackdown is also prompting some miners to undersell mining equipment, helping knockdown prices,” Zhang said.
This article was first published on coinquora.com