Chinese mining pools still rank among the top three in the world, and the Antminer S9 is far from the shutdown price

On May 21, at the 51st meeting of the Financial Stability and Development Committee of the State Council chaired by Liu He, Vice Premier and Director of the Financial Committee, it was clearly stated that we must resolutely prevent and control financial risks, strengthen the supervision of financial activities of platform enterprises, and crack down on Bitcoin mining and trading.
Influenced by this news, Bitcoin and cryptocurrencies generally plummeted.
Putting aside the impact of prices, what is the impact on the Bitcoin computing power industry?
Here are a few public statements we’ve seen.
For example, B.TOP Mining Pool decided to stop providing mining machine purchasing services for customers in mainland China. For example, Huobi Mining Machine Mall decided to suspend providing related services to users in mainland China.
Let’s take a look at the overall situation through a set of on-chain data.
First, look at the computing power of the entire network.

QKL123 data shows that on May 13, the average computing power of the entire Bitcoin network reached a record high of 197E. On May 22, the data dropped to 136E. From the data, the decline is 31%. Since the data itself is a forecast, the 31% decline shows that the computing power is indeed declining. But if we compare the changes in the computing power of the entire Bitcoin network over the past year, there is still a 46% increase.
How will the hash rate change in the future? According to BTC.com data, the next difficulty adjustment is expected to be 5 days and 16 hours later, and the difficulty will be reduced by 3.89%, which means that the average hash rate of the entire network will fall.
What about mining pools? Chinese mining pools still have an absolute advantage. AntPool, F2Pool, and Poolin rank in the top three.

In the past 24 hours, the computing power of the top mining pools has changed little, but Binance Pool has seen a huge increase of 10.22%, while Huobi.pool, which is also an exchange mining pool, has seen a huge drop of 16.06%. BTC.TOP has seen an increase of more than 30%, and this mining pool belongs to Jiang Zhuoer.
Previously, Grayscale founder Barry Silbert tweeted that Foundry USA has become one of the top five mining pools in the world, and Bitcoin hash rate is rapidly shifting from China to North America. However, the latest data from BTC.com shows that the mining pool is only ranked 11th.
With the current network computing power and Bitcoin price, are there any mining machines that have started to shut down? Of course there are. But we can see from the data of F2Pool that the electricity cost of Bitcoin mining machines with an energy consumption ratio of less than 100W/T is about 60%, which means that mainstream mining machines still have a lot of profit space at the current price.

For example, the Antminer S9, a mining machine known as a magic weapon, has gone through several rounds of bull and bear markets, and once entered the "shutdown time" on March 12. However, at present, the electricity cost of this mining machine accounts for 62%, which is far from the shutdown price.
What do practitioners think of China's computing power industry?
Jiang Zhuoer said that the current situation of Bitcoin mining is actually not as bad as everyone thinks.
He further analyzed that, combined with the context of the meeting convener, the "Financial Stability and Development Committee" and the meeting minutes, "resolutely prevent and control financial risks... crack down on Bitcoin mining and trading, and resolutely prevent individual risks from being transmitted to the social field." It can be seen that the main spirit of the meeting is still "preventing and controlling financial risks", mainly to prevent financial and social capital from intervening in mining, which in turn causes individual risks to be transmitted to the social field. In other words, individual mining is allowed, and you can bear the profits and losses yourself, but financial capital is not allowed to intervene in mining, which will lead to social risks due to losses.
In addition, Jiang Zhuoer also believes that for mining machines, there is no risk of being seized unless they steal electricity for mining. The biggest blow to the mining industry from the meeting minutes is the blow to large mining farms, but the blow to the entire Bitcoin mining industry is not that big. The worst case scenario may be that large mining farms are closed and the Bitcoin mining industry returns to the state of 2014-2015 - small miners put a few mining machines at home to mine, medium miners find a warehouse to put dozens of mining machines to mine, or find a factory to put hundreds of mining machines to mine, and large miners find a remote small hydropower station where electricity cannot be sold, and put one or two thousand mining machines to mine. Therefore, Bitcoin mining will continue to proceed normally, but the main body of mining in China has changed from large-scale mining farms to family miners and small and medium-sized miners. Even if this change causes 50% of the mining machines to be unable to operate, it is not a problem for the Bitcoin system. But in the long run, if Chinese regulators oppose mining, then Chinese mining machine manufacturers will basically sell their mining machines abroad. Selling domestically = violating regulations, and selling abroad = exporting to earn foreign exchange. Everyone will sell abroad, and finally China's computing power will flow abroad. After the transaction is delocalized, the computing power will be delocalized. In this process, the Bitcoin system will not have a significant impact - except when you look at the mining pool rankings and see that a group of European and American mining pools have been replaced.
Mint 37 Degrees said that the computing power of Bitcoin has begun to drop, and the country has begun to catch up with the hosting of Bitcoin mining machines. The computing power is likely to plummet. In the next few months, irresistible forces will come down, and the mining circle will be reshuffled and the world will change. But there are great opportunities in this big change, and heroes emerge in troubled times.
Wan Hui said that after this, the delocalization of computing power, pricing power, and even liquidity will be accelerated. Sincerely, the future market is promising.
In fact, at present, miners are generally still in a wait-and-see state, waiting for more policy news. After all, no detailed documents have been seen yet. "Respond to changes with constancy," they said.