China accounts for 2/3 of Bitcoin’s computing power, with 54% in Sichuan

Source: Scallion Blockchain

Chinese bitcoin miners now control two-thirds of the world’s computing power, according to a report from digital asset manager CoinShares.

The main points of the report are as follows:

1. Chinese Bitcoin miners control 66% of the computing power, with Sichuan alone accounting for 54%;

2. The growth of China’s share may be due to the deployment of more advanced mining equipment and the improvement of miners’ profitability;

3. The global Bitcoin hash rate has increased by 80% since June;

4. As China's cash mining equipment and chips enter other regions or countries, China's share may decrease.

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54% of Bitcoin computing power is in Sichuan

After Chinese miners controlled 60% of the hash rate in June, China’s share has now grown to 66%, the highest since CoinShares began keeping records two years ago.

(Picture from thenexweb)

At the current price of Bitcoin (about $7,200), miners are producing about $4.7 billion worth of Bitcoin each year.

CoinShares said the main cryptocurrency mining centers are located in Yunnan and Sichuan in China, with the latter accounting for more than half (54%) of the global share.

This is higher than the number in May. The report released by the company shows that Sichuan Province accounts for 48% of the crypto mining activities, and China accounts for 60% of the computing power.

In addition, excluding China, other regions currently account for about 35% of Bitcoin computing power. About 31% of the computing power is evenly distributed in the following regions or countries: Washington, New York, British Columbia, Alberta, Quebec, Newfoundland and Labrador, Iceland, Norway, Sweden, Russia's Siberian Federal District, Kazakhstan, Georgia and Iran.

Bitcoin computing power increased by nearly 80% since the end of May

Xiaocong found that as of December 6, the average two-week computing power of Bitcoin has remained above 90EH/s for six consecutive times, and is currently 93.28 EH/s. In addition, the mining difficulty is 12.88T. At the end of May, the computing power of Bitcoin was only about 50EH/s, an increase of nearly 80%.

In this regard, Chris Bendiksen, head of research at CoinShares, said that the surge in Bitcoin computing power may be due to the deployment of more advanced mining equipment by Chinese miners. However, as these new equipment enter the mining market of other countries, Bitcoin's hash rate will be more evenly distributed globally, and China's computing power share may decline.

Earlier this month, Zhou Xiaochuan, former governor of the People's Bank of China, wrote in Caixin that China once accounted for a large proportion of "mining", and ICO and Bitcoin trading volumes once accounted for a large proportion internationally. This will definitely cause some concerns among regulators about the health of the financial market, consumer and investor protection, and financial stability.

At the end of October, Jiang Yang, former vice chairman of the China Securities Regulatory Commission, said that 70% of the world's bitcoins are produced in China, with India, which ranks second, accounting for only 4%, and the United States accounting for only 1%. Sichuan has become the country's largest bitcoin mining site due to its rich hydropower resources. Blockchain involves all walks of life, and its application in the financial field is mainly digital currency represented by Bitcoin. Jiang Yang therefore suggested that Sichuan should make good use of the foundation of Bitcoin mining, study the relationship between blockchain, digital currency, hydropower resources, etc., and explore new industrial growth points.

Reference articles:

https://thenextweb.com/hardfork/2019/12/11/bitcoin-cryptocurrency-mining-hash-rate-china-renewable-energy-blockchain/

https://uk.reuters.com/article/uk-crypto-currencies-mining/chinas-bitcoin-miners-scoop-up-greater-production-power-research-idUKKBN1YF1Q1?il=0