Inner Mongolia is famous for cheap electricity by virtue of its large coal mines.  The region has investment from several power intensive sectors like the aluminum and ferro-alloy smelting in the past decade. Thus, the region contributed to 8% of global mining computing power.

Inner Mongolia have now banned cryptocurrency mining.  They have declared to shut all such projects by April 2021.  Thus, creating fears to eradicate the power-hungry Bitcoin mining using the power from this region.

A draft plan posted on the Inner Mongolia Development and Reform Commission’s website on Feb 25, 2021 bans new digital coin projects.  All of these constraints are meant to prevent huge energy consumption and decrease the consumption by at least 1.9% by 2021.

This draft reportedly comes after strong criticisms from the top economic planner stating that Inner Mongolia is the only province to fail to control energy consumption in 2019.  The region currently is focusing to cut down on the incremental growth of energy consumption to nearly 5 million tons in standard coal.

Worth noting, Goldman Sachs are restarting their cryptocurrency desk amid Bitcoin boom. Someone who is well aware of facts related expressed that they will begin dealing with bitcoin futures and non-deliverables forward for clients from next week.  There will also be projects involving blockchain technology and central bank digital currencies.  They are also exploring the potential for projects involving blockchain technology, central bank digital currencies, and exchange traded funds.

Goldman Sachs are opening shop at a point in time where there is increased interest among Bitcoin institutions that has increased by 470% in the past year.

Worthy to recollect that way back in 2018, when Goldman Sachs started off with their cryptocurrency desk the price of the Bitcoin fell down from record high, thus scaring investors away. However, the market infrastructure has improved now and several mainstream companies and financial institutions are entering in to the sector.  More numbers of companies are willing to have BTC in their balance sheets.

Institutional investors are now considering Bitcoin to work as a hedge versus inflation while central banks and governments are starting off with their stimulus taps.

Despite the growing interest, nothing about the volatile nature of Bitcoin has changed so far.  BTC and derivatives by virtue of its volatility is attractive for investors who are willing to go long and short riskier positions.

Worthy to recollect, Tesla Inc, electric car manufacturer bought $1.5 billion worth in bitcoin.  Also, Bank of New York Mellon stated that they have formed a new unit to help clients to hold and transfer digital assets.