China's crypto miner exodus

[Bloomberg]( Follow Us [Get the newsletter]( Hi all, this is Zheping in Hong Kong. Every autumn, Chinese Bitcoin miners leave their bases in the country’s hydropower-rich south to head north in search of cheap coal to fuel some of the world’s largest cryptomining operations. They travel hundreds of miles in trucks full of clunky machinery to settle in the borderlands until spring’s rainy season prompts them back, like migrating birds seeking the perfect climate. But this year, many Chinese digital miners—a group that [at one point]( produced more than 75% of Bitcoin’s global computing power—are taking longer journeys and may never return. In May, Beijing’s top officials called for a [renewed crackdown]( on cryptocurrencies. After years of leaving miners undisturbed despite the country’s restrictive policies, local governments in places like northern Inner Mongolia and Sichuan Province abruptly severed power to the specialized computers humming in warehouses and data centers churning out Bitcoin. Many miners uprooted or abandoned their operations altogether. The global Bitcoin network’s total computing power has plunged roughly 60% since the start of last month, according to [data tracker]( Mining Pool Stats. Now, many of those China-based miners are looking overseas, from the U.S. to Russia and Kazakhstan. Miami Mayor Francis Suarez [told CNBC]( that his city welcomes the Chinese miners and touted its nuclear energy. “We’re talking to a lot of companies and just telling them, ‘Hey, we want you to be here,’” the crypto-friendly politician said. What’s driving China’s anti-crypto moves? For one, officials have grown wary of Bitcoin mining’s huge power consumption—more annually than all of the Netherlands—at a time when President Xi Jinping has set ambitious climate goals. Another less heralded reason is the challenge that crypto’s rise poses to Beijing’s cherished financial stability. Miners have to exchange their product for yuan to pay electricity bills, cover rent and buy new machines. That newly minted Bitcoin then leads to other transactions within Chinese borders that are difficult for regulators to track. The overarching impetus for control and predictability drove China’s central bank to issue a [digital yuan](—currently still on a trial basis—as a backup to private-sector payment tools like Ant Group’s Alipay app. It’s also what instigated the country’s first crackdown on crypto trading in 2017. But the story of China’s crypto miners isn’t over. Earlier this month, El Salvador became the first country to adopt the token as legal tender and its meme-loving president, Nayib Bukele, [tweeted]( that his nation’s volcano power could be used for mining. Whatever the energy source and geography ultimately chosen, Bitcoin’s future is looking less and less China-centric.—[Zheping Huang](mailto:zhuang245@bloomberg.net) If you read one thing “It’s you against the machine,” said one worker at Amazon, where algorithms are hiring, rating and [firing people without human intervention](. Departing Chief Executive Officer Jeff Bezos is said to believe machines make decisions more quickly and accurately than people. Flex drivers aren’t so sure. And here’s what you need to know in global technology news Facebook is worth more than $1 trillion. The company’s [stock rallied]( Monday after a [judge dismissed two major antitrust complaints]( against it. Google’s ad business is facing [Justice Department scrutiny](, a signal that the Biden administration could be picking up where Trump left off. Disney’s comic-inspired series “Loki” has helped make Disney+ the streaming provider with the [biggest growth in downloads]( for two straight weeks.  It’s time to Power On. A new weekly newsletter by Bloomberg’s Mark Gurman delivers Apple scoops, consumer tech news, product reviews and the occasional basketball take. [Sign up to get Power On]( in your inbox on Sundays.  Like Fully Charged? | [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Fully Charged newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022