2021 Crypto Mining from China to the United States 2022 Ethereum to POS Wu said the year-end review (4)

2021 could be the most important year in the history of cryptocurrency mining.

In the first quarter, Chinese mine owners were actively working with local governments to build consumption parks and prepare for the flood season. In the second quarter, the Chinese central government suddenly introduced a strict policy to crack down on Bitcoin mining, raising it to the point of endangering the carbon neutrality policy and even endangering national security. Under such unexpected circumstances, almost all large mines were closed, and small and medium-sized mines also faced heavy inspections from local governments. The total Bitcoin computing power of the entire network plummeted by 50%. Going overseas, waiting, or transforming? Where will Chinese miners go after 619?

Fortunately, in the bull market, miners generally accumulated more profits and began to migrate. When the ban was just issued, Kazakhstan was a better place to migrate than the United States. On the one hand, the distance is relatively close, and on the other hand, the United States has high punitive tariffs. However, with the arrival of winter, Kazakhstan began to have serious power shortages, and the Kazakhstan government also began to crack down on unapproved gray mines. Under such circumstances, many Chinese companies announced their farewell to Kazakhstan and moved to Russia and the United States again. However, it is not ruled out that Kazakhstan's computing power will pick up again after the arrival of next spring. Some mines have power outages and Kazakhstan miners are facing a "difficult winter"

The United States has a good market mechanism, legal system and power infrastructure. The difficulty lies in high tariffs and high construction costs. But under the current circumstances, the United States has become almost the only choice for large miners. The United States is led by Texas, and almost every Chinese mining company has an office in Texas. After 6 months of transfer, in December 2021, the total computing power of Bitcoin has returned to 180EH/s before China's crackdown. Prohibition and support coexist: How do U.S. states support and regulate Bitcoin mining?

In the mining machine field, the top three of Bitmain, Shenma and Canaan are still very stable. According to rough estimates, Bitmain's annual revenue is about 2-2.5 billion US dollars. Canaan's annual revenue is about 700-100 million US dollars. In the mining pool field, DCG's Foundry mining pool has benefited from the transfer of China and the United States, and its computing power has reached the first place. Wu said weekly mining information: FIL circle is shaken. Bitmain released a new mining machine 1101-1107 Wu said weekly mining information: Mining pools have announced that North American computing power has increased dramatically 1011-1017

Mining companies continue to go public. Currently, there are North American listed mining companies headed by Marathon, Riot, Bitfarm, Hive, Hut8, etc. There are also Chinese-funded mining companies such as Jiucheng, BitMining (formerly 500.com), BTBT, etc. Next year, BitDeer and others will also go public. However, there seems to be no news about the listing of the two giants Bitmain and Shenma. The transformation of mining companies into listed companies has also caused miners to change from the original main sellers to HODLes.

In addition to Bitcoin mining, the computing power of Ethereum mining has skyrocketed with the shipment of various ASIC mining machines. Filecoin is just the opposite, and its price hit the bottom at the end of the year. The problem of early wild growth has led to large companies in the industry such as Interstellar Alliance, Peer to Peer, and Renren Mine to be investigated, and the industry has reached a low point. Wu said that the weekly mining news: FIL circle is shaken by Bitmain's new mining machine 1101-1107

It is generally expected that the total Bitcoin hashrate will rise to 300EH/s in 2022. At the same time, the price of Bitcoin is likely to fall as the Fed raises interest rates. Therefore, the overall profit of mining will be greatly reduced. The Ethereum POW to POS transition will most likely be completed in 2022, and is currently expected to occur in the middle of the year. This will be a major change in the industry. Analysis: When is the specific time for the Ethereum difficulty bomb and farewell to POW?