This China Business News article about hydropower stations will blow your thoughts. It comprises revelation after revelation and clears the state of affairs up. Now that Bitcoin mining is prohibited, who’s consuming that power? How has the federal government determination affected non-public enterprises? Well, you’re not going to imagine this.
It all began with this tweet by Chinese journalist Colin Wu.
Use Google Translate to learn this Chinese report https://t.co/xyMA1uaGlb
— Wu Blockchain (@WuBlockchain) July 7, 2021
The first paragraph of that article clears up what Colin Wu’s first tweet’s all about. Namely, that within the “largest second-hand trading platform, private hydropower stations are being sold in large numbers.” Why is that? Well…
In the facility trade, a hydropower station is typically thought to be a tireless cash printing machine. But after ten years of investing in a small hydropower station in Sichuan, Zhang Huifa determined to promote the facility station for greater than 60 million yuan on the second-hand buying and selling platform Xianyu.
It’s mind-blowing that China has a second-hand buying and selling platform that sells entire hydropower stations, however that’s neither right here nor there. The crops are “mainly distributed in Sichuan, Guangxi, Gansu and Yunnan.” Both Sichuan and Yunnan have been Bitcoin mining hubs, in accordance with Nic Carter’s report. The purpose all of that is taking place is that “the huge initial investment and long return on investment often pose huge challenges to investors.”
Related Reading | Bitcoin Hash Rate Goes On Death Spiral Post China’s Crackdown On Miners
Apparently, lots of the homeowners needed to take out loans. A decade later, with a purpose to end paying them, they need to promote the facility stations. Or no less than that’s what the article tries to convey.
Abandonment Of Electricity
According to the article, the heyday of personal energy crops in China was the start of the century. Investors constructed 1000’s of hydropower stations as a result of they noticed them as a continuing money cow. For their half, the areas close by noticed them as an indication of progress and an answer to their power issues.
However, with the gradual surplus of electrical energy in China lately, the electrical energy generated by hydropower stations is usually destined to being deserted (generally generally known as “abandonment of electricity”)
Now, Google did a lot of the translations. So, perhaps the phenomenon just isn’t “commonly known as “abandonment of electricity” in different areas of the world. However, the actual fact stays: Bitcoin mining tends to go the place there’s surplus power out there, as our sister web site Bitcoinist already instructed you. The purpose for that’s easy: power is cheaper in these areas.
BTC value chart on FTX | Source: BTC/USD on TradingView.com
Are They Selling Hydropower Stations Due To China’s Ban On Bitcoin Mining?
According to China Business News, nothing may very well be farther from the reality:
Some individuals have linked this promoting habits to the continued rectification of digital forex “mining” operations. Many small hydropower stations have certainly benefited from “mining”, however the sellers contacted by the CBN reporters all said that that they had their very own causes for the sale.
To show this, they go into the numbers. In 2011, this one plant bought all the facility it generated to the State Grid.
But in 2016, the operator constructed a Bitcoin “mining” plant close to the facility station. He rented it out to firms that got here to Sichuan to “mine.”
After that, the wind shifted and the tables turned:
In 2016, the facility station’s electrical energy income from the State Grid was 4.6 million yuan, and the electrical energy income from Bitcoin mining firms was 1.8 million yuan. However, by 2018 the 2 numbers become 2.7 million yuan and 4.1 million yuan respectively.
Losing all of that income is purpose sufficient to promote, and that was Colin Wu’s interpretation of the state of affairs. However, the article’s topics provide one other perspective:
Zhang Huifa stated that the principle purpose for the sale of the small hydropower station was the issue of capital turnover in the actual property sector he invested in. Li Chengming stated that the rationale for the sale of the small hydropower station was that he didn’t wish to proceed taking good care of it, although the hydropower station produced a steady revenue of lots of of 1000’s of yuan per 12 months.
But, are they telling the reality?
The Human Side Of Hydropower Stations
The article does a fantastic job promoting the story. They instantly clarify the psychology and the psychological state of its topics in a means that makes the reader determine with their state of affairs:
They are all of their 50s and 60s and have to return house to take care of their households. The youthful technology prefers to go to large cities. No one desires to go to the deep mountains and outdated forests the place these small hydropower stations are positioned.
And to prime all of it off:
“Many small hydropower stations generally require only one employee to be guarded. Staying in that kind of place all the year round can make a person feel very lonely.” Some of them stated, “You don’t know how to deal with the sound of running water every day. Someone say something!”
That sounds horrible. A query arises: What’s the article’s recreation? Are they making an attempt to ensure these non-public hydropower stations don’t promote? Or… is that this some type of reverse psychology play?
The Revelation: They Might Be Trying To Get Rid Of These Hydropower Stations!
The article finishes with a bomb that explains the whole lot:
According to 2020 statistics from the Sichuan Provincial Department of Water Resources, there are 5025 small hydropower stations in Sichuan. Out of these, 4774 are concerned in rectification and decommissioning. It’s estimated that 1091 will likely be decommissioned and 3683 will likely be rectified.
There’s a purpose for that:
“Hydropower stations have always been one of the important factors restricting the ecology of Sichuan’s rivers.” Wang Hua, deputy director of the Sichuan Provincial Water Resources Department, stated in 2020
It’s attainable that the federal government is making an attempt to do away with these crops. That would clarify the article’s tone, it looks as if it was making an attempt to get traders to avoid these hydropower stations. In mild of this, China’s ban on Bitcoin mining may simply be a part of a fair greater play. They’re severe and methodically shaking issues up over there.
Related Reading | Pakistan to construct Bitcoin mining farms in pilot program
What may very well be their end-game? Is China simply making an attempt to go carbon impartial and restore the unique movement of the rivers? Or is there one thing else at play right here?
Featured Image by Gary Yost on Unsplash - Charts by TradingView