China decided to support Bitcoin before halving

One of the main technology centers decided before Halving to support Bitcoin and other blockchain-based projects based in the area due to cheap electricity from hydropower plants. Beijing now has to decide whether the excess electricity will be sold well below cost in order to support its economy based on cryptocurrency.

China will support projects on the blockchain before the halving

Sichuan province officials have sent a clear message to Beijing.

In an official statement, the representatives of the Socialist Republic wrote:

The central government should look at strategic options in the blockchain industry. It should use excess electricity from hydropower.

Of course, the document does not mention any cryptocurrencies. China is very cautious about cryptocurrencies after the 2017 debacle. The central government knows that this is an important industry, but it does not want to directly support it because of its nature.

In November 2019, China removed the blockchain industry and cryptocurrency mining from a list of companies that could be banned. Mining generates a big profit. About 90% of all mining takes place in China. The reason is, of course, very cheap electricity from the huge rivers that flow through the state.

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