What changes have occurred in Bitcoin computing power after mining farms were cleared out in many places in China?

Original title: "Let the data speak: After domestic miners shut down for three days, what changes have occurred in the BTC network's computing power? "
Written by Yogita Khatri
Translation: Tanker

Contents

1. According to data from The Block Research, the total computing power of the Bitcoin network has dropped by nearly 50% compared to a month ago.

2. Domestic restrictions on digital currency mining and the continued decline in Bitcoin prices may be the two main reasons for the decline in Bitcoin's overall network computing power.

Bitcoin hashrate, or the computing power used to mine the cryptocurrency, has fallen by nearly 50% compared to just over a month ago.

On June 18, the relevant departments of Sichuan Province issued a notice requiring power generation companies to conduct self-inspection and self-correction, immediately stop supplying power to virtual currency mining projects, and implement the national cleanup requirements without compromise. The notice also requires that all municipal (prefectural) governments immediately carry out a dragnet investigation, and immediately shut down any virtual currency "mining" projects found in the investigation, and report the cleanup and shutdown situation before June 25. All localities are strictly prohibited from approving virtual currency mining projects under various names.

At 0:00 on June 20, several digital currency practitioners revealed that all Bitcoin mining machines in Sichuan would be collectively powered off, resulting in a sharp drop in the computing power of multiple Bitcoin mining pools with domestic backgrounds, and the computing power of the top 10 mining pools fell across the board. According to computing power data compiled by The Block, the total computing power of Bitcoin on May 15, 2021 was about 168,000 PH/s, but today (June 23) it has dropped to about 86,000 PH/s.

The data above is taken from The Block Research, BTC.com

In fact, China has taken action since last month to shut down Bitcoin mining activities in many regions including Xinjiang and Sichuan, after which the Bitcoin network computing power began to drop sharply. It should be noted that the Bitcoin computing power in Xinjiang and Sichuan alone is estimated to reach 50 EH/s, accounting for about 30% of the total Bitcoin network computing power.

According to relevant reports, the reason for taking such strong restrictive actions on Bitcoin mining is mainly to reduce carbon footprint and impact on the environment.

According to the Cambridge Bitcoin Electricity Consumption Index, as of April 2020, about 65% of the world's Bitcoin mining activities took place in China. However, as The Block previously reported, China's dominance in the Bitcoin mining market has actually been significantly weakened in recent months. According to relevant market participants, China's share of Bitcoin's total network computing power is now less than 50%.

As the Bitcoin mining industry continues to suffer from a "hit", it is expected that the share of domestic Bitcoin computing power in the total network computing power will likely decline. The plunge in Bitcoin prices in recent weeks is another major reason for the decline in computing power.

According to data compiled by The Block, the computing power of most Bitcoin mining pools with Chinese backgrounds has dropped by more than 50% in the past month. For example, the computing power of AntPool and F2Pool has dropped by 58% and 56% respectively in the past month.

The data above is taken from The Block Research, BTC.com

On the other hand, the computing power of the US Bitcoin mining pool Foundry USA increased by about 15% during the same period. Foundry USA is a Bitcoin mining subsidiary of Digital Currency Group, which opened its mining pool business to the public in March 2021.

Last week, Digital Currency Group founder and CEO Barry Silbert tweeted that Foundry USA had launched at the “perfect time” and hinted that the pool could soon become one of the top five Bitcoin mining pools in the world (currently Foundry USA ranks seventh).

In addition to the United States, Kazakhstan, Russia and Georgia seem to be very attractive to Chinese miners, who are trying to transfer mining machines to these regions to resume Bitcoin mining.

Source link: www.shenliancaijing.com