Bitcoin Forum

As we all know, China is a leader in bitcoin mining and is one of the most important countries in the world in bitcoin mining.
But data show he climbed into the Foundry Mining Pool in the United States in April. It is one of the top 5 pools in the world and owns 7.6% of the shares.
Also, in the data seen from the pools, we can see that the hashrate of Chinese pools has decreased.
According to the Nasdaq, Texas could become one of the most important hubs for bitcoin mining due to its supply of wind and solar energy.
Here we can see the transfer of mining power from China to USA.

Source:https://cointelegraph.com/news/signs-the-bitcoin-hashrate-is-starting-to-move-away-from-china (https://cointelegraph.com/news/signs-the-bitcoin-hashrate-is-starting-to-move-away-from-china)

Chinese government is trying to shut down many mining pools and this might be a good opportunity for us to close the gap. However, I still doubt that the climate of this country is good for set up pools. Only alaska is cool enough that electric bill will not be a trouble

Pool location does not equal miner location.
Picking on ViaBTC at the moment. They are hashing at about 10K PK/s at the moment.
Some of that is from China, some is from the US, some is elsewhere. But the pool itself is in China.
But saying that all of it is China based hash is not correct.

Also, although Texas might be a good location to setup a pool it is not that great to setup a mining operation.
It gets hot in the summer driving up cooling costs.
As the storm this winter proved their electrical system is very fragile.
In the US for the most part the Pacific NW and other areas with massive hydro power and stable weather tend to be better for mining.

-Dave

I sure hope we get more hashrate on Foundry so we can finally get rid of the old classic "BitCoiN iS CeNtRaLizEd BeCaUsE aLL MiNeRs ArE iN ChiNa" FUD. Hopefully Miami mayor Francis Suarez can give them a hashrate boost. He's been killing it lately with Bitcoin and technology advancements in general.

https://www.btctimes.com/news/Miami-Mayor-bets-on-Bitcoin

When the mining hash rate dropped few weeks ago, I noticed that Foundry Mining Pool which is located in North America later increased its mining hashrate, it will be good if this continues in the North America region. China control over 75% of mining hashrate before but now controlling lesser today, at the begining of this year, China controls around 65% but recently lesser because of the increaseed hash rate from other region, especially North America, specifically USA.

It's no surprise that we see rise of other big mining pool outside of China, and United States is first obvious choice but I recently examined all other countries that have potential for doing something similar.
More than 150 countries are currently producing hydroelectricity that can all be used for Bitcoin mining, and along with US and China other there are other countries like Brazil, Canada, Russia and India.
I would like to see more balance of countries and I would love to see bigger mining pools in Russia, Brazil and other countries that have cheaper electricity.
Focusing more on hydro energy for mining bitcoin we are closing the mouth of many bitcoin bad for climate trashtalkers and distributing hashpower in more countries.

Don't look at the data and judge it solely based on where the pools are based in. Most pools have servers in different locations and people from all over the world can connect to their pools, mainly from the lower fees or payout variance.

In the recent months, the proportion of China miners has indeed decreased in comparison to the rest of the world. US is certainly still not the most conducive place, isn't there still tariffs on ASICs from China? I'd think that labour laws are stricter there and probably would have to spend more on that as well. The decrease in proportion is most likely due to the decrease in the miners from China rather than an increase in miners from the US.

It is true that many miners join chinese pools because they have lower fees and other incentives, but nothing is stopping pools from US and other countries to have even lower fees in this open market.
We can still assume that many actual mining devices are actually located in China and joining their own chinese pools, but I am not sure if it's possible to be more precise and see actual IP addresses of each miner inside specific pool.

This is wrong information and China is actually not controlling 75% or 65% of Bitcoin hashpower, but like I said before I would like to confirm that with more precise data if anyone can share that info.
Wherever pool location is, if something happens to pool itself it also affect all miners connected with that pool, resulting in drop of hashpower until miners configure to use some other available pool.

Payout variance is something that you cannot solve without having miners in the first place. Miners are far more likely to favour larger pools due to their reliability as well, fees can matter less in some instances.
CBECI has randomized data here: https://cbeci.org/mining_map.

** I didn't see the edit when I was typing. But given that the data consists of only pools based in China, it could very well be possible that there might be some discrepancies from the actual values due to the sampling method.

How is it wrong? China Chinese miners control 75% of hash rate in 2019, but drastically reduce to 65% in 2020. This image is the hash rate generated by each country a month ago.

https://i.imgur.com/H7rc6RE.jpg
https://cbeci.org/mining_map

Better read previous posts before asking questions like this.
China is NOT equal all Chinese mining pools, and that is NOT equal all miners in that pools located in China.
For example I know some people from Europe, that have asic miners running in EU but they use Binance pool, and they are also part of that 65% like many others.

No, the stats that the user is providing is not completely wrong. As in the graph represents the aggregate IP logs across the (few) pools. I mean you can't really get anything more accurate than this considering the top pools are all based in China. You can interpret the stats both ways, whether it is indicative of the actual situation or not.

IMO, its a 50-50; you're counting only Chinese pools but a significant proportion (I think 2/3) of them is Chinese anyways.

Yeah so the pools that are Chinese controls about 80%. Only if the rest of the network are not Chinese, then I presume it would be around 50% actually.

Answers are given in CBECI's methodology for Mining map ^[1]

Three assumptions and two potential bias factors (at least)

Assumptions

Bias factors / limitations

[1] https://cbeci.org/mining_map/methodology

I think South Korea have Bitcoin mining farms too. With all financial, economic sanctions on that nation, their governments probably set up and run Bitcoin mining farms. Probably with support from China.

I keep seeing this misformulation repeatedly. Saying that “China control 75% of hash rate” isn't accurate. Who is China? The government owns it? The people own it? A company by the name “China” owns it? These are all wrong!

Most of the mining pools are located in China. They aren't controlled by it. That being said, besides those who mine in China, there are others outside China who prove their work on a pool located in China. This means that statistically, the majority of the coinbase transactions that are broadcasted daily begin from China.

China (the country) shouldn't be seen as a threat to Bitcoin.

US was once the leading hashrate in bitcoin world to the point where more than 70% of the hashrate was coming from there. funny enough nobody said any FUD about "America controls bitcoin" back then, they just did it to China. now US is pulling itself back up with 7.6% hashrate but there are now a lot of countries that are taking the lead and increasing their hashrate in a competition...

I have changed it to Chinese miners. Nobody is saying they are threats but they generate most of the hash rates, it has reduced though but they are still the main miners mining bitcoin. This does not make the blockchain weak because not only one mining pool are in China, there are still mining pools in some other countries of the world like USA. The mining hashes generated generally in the world are more than enough to secure the blockchain.

It's not completely wrong, but it isn't completely accurate also because it is based on assumptions and samples.

There is no single entity that is controlling Bitcoin mining, but one entity can certainly disrupt mining like we saw in recent electricity testing restrictions in China, meaning that more pools in different countries is better.


Same thing would happen to Russia if they ever have biggest hashrate, and it's always easy for some people to blame Russia for everything  :D

Dude, didn't you know? China bad!

In all seriousness though, it's just that people are forgetting that China's citizens are pretty much normal people as well lol. For some reason when people hear "China" they automatically think of the Chinese Communist Party(CCP); totally forgetting that China has an extraordinarily gigantic population of non-government (normal) people.

Can you provide me a link to an article that explains why they are the main miners? While the biggest pools are located in China, it doesn't necessarily mean that the main miners are Chinese.

The waste of electricity in China is one of the causes of the decline, in addition to the increasingly unstable global economic factors in China. indeed we must be able to show innovation in the development of the Bitcoin industry, so as not to expend high energy with the risk of having a big impact on the stability of the hashrate system. The high cost of electricity has an impact on changes in work ethic and natural disparities. because large electricity consumes a lot of resources.
Then with solar electricity and wind power being the most dominant alternatives which are now one of the factors in formulating the problem in overcoming Bitcoin mining. china should be able to do additional strength, otherwise the impact will be enormous.

hahaha it is just the US culture that anyone who doesn't fall in line with the US government's demands or dares to advance in the world turns into a big evil. eventually everyone starts thinking they are all evil and in any negative topic whether it is spreading a pandemic or controlling bitcoin mining they start blaming that big evil entity that they were brainwashed to blame :D

This less hashrate control by China could trigger a leap in the bitcoin revolution in various parts of the United States.
But one interesting point I encountered was the transfer of bitcoin miners to other countries by China. (I will publish an topic about that in the coming days)
But if China lags behind the competition, we can see that China has less control over the hashrate, and the United States has more control over its share of cheaper resources.

Alaska and the other cold region in North America will be perfect for the mining place to mine BTC and other top cryptocurrencies. If they can set the most of the mining companies in the coldest region in the North American continent, they don't need to worry about the Chinese government shutting down all the mining facilities in their country. I think they will migrate all to those places if their given chance to operate again.

I've mentioned the tendency and the source of any statistical bias in my previous replies.

Check the links (CBECI) referenced in my prior replies. It doesn't take the data solely based on the pools but a sampling using the connections established to the pools, which accounts for 37% of the network hashrate. You can interpret it as the composition of the miners in those three pools, extrapolating to the rest of the Chinese pools would probably still bring it to an acceptable margin of error, note that some of the other pools also directly operates several farms within China, so those could possibly have even greater composition of Chinese miners.. Data is accurate for April only.

Anyways, unless someone is intentionally trolling, I doubt anyone in the right mind would try to use a VPN/Proxy to masquerade as a Chinese Bitcoin miner or to any significant capacity. Understand that it has to be an assumption but it is just so unlikely.

This proves that Americans are more interested in Bitcoin and they have spent more money investing in equipment to mine Bitcoin. This is out of need and I think that is normal. The Chinese miners have saturated, did not expand their facilities or updated new equipment for their Bitcoin mining plants.
Miners in the US come later and they can buy more modern equipment and mine Bitcoin more efficiently.

How do you know that Chinese miners aren't expanding their facilities and updating their equipment?
Did you travel to China,in order to inspect their mining facilities and hardware? ;D
From where the US miners will buy their mining equipment?AFAIK,Chinese companies are producing most of the crypto mining hardware.
I don't really believe that mining in the US will be more effective compared with mining in China.
The electricity costs,real estate prices and labor costs are bigger in the US,compared with China.
I'm not advocating on Chinese miners.The biggest problem with Chinese miners is the government of China,which is kinda unpredictable and we don't know when the government will try to shut down all crypto miners.

I'm just speculating based on my subjective thinking.
All you argue is perfectly reasonable. But now besides my explanation, can you have a better explanation?
Bitcoin mining in the US isn't as efficient as in China, but the Americans may have stepped in. The latecomers will have their own advantages such as having comparable equipment that consumes less power and is more efficient.

Well, since people build mining farms there and not in Oregon they might know something, isn't it?  ;D


Do you know where 1/3 of the hashrate in the world is located? In a damn desert! ;D
Xinjiang has the worst climate possible in China is we count summer temperatures, but that doesn't matter when the power is so cheap you can afford to pay triple on cooling. Besides, industrial cooling is highly effective, when you pay 2cents per kWh you stop caring about what's outside.

It's all a matter of money, and with Texas producing one and a half more energy than the second state in the US despite not being the most populous one, places with dirt-cheap energy are easy to find, especially ones that had already seen high electricity usage like the Alcoa smelter it cuts a lot of investing which don't come cheap, especially when we go above 10MW.


Bitmain doesn't care who pays for the miners if it's from the US or EU or China.
There is no Chinese or American in this business, it's a company that is based in some country and nothing more, business is not always about politics. Bitmain is supplying Riot with 50k miners and Marathon with 100k, what matters is selling as fast as possible to the guys who can afford to pay more and grab the profit, hardcore nationalism is not good for business.

Really? I saw estimates that they're 30% of the hashrate coming from China. XinJiang's climate isn't that terrible, it still has a seasonal weather and certain parts of it are still fairly cool.

Cooling probably isn't the main priority nor do they really care. Paying extra on cooling is mostly redundant, you get fairly marginal benefits from overclocking them anyways. Ambient temperature delta is not that substantial to warrant additional cooling, if you consider the cost of installing them.

Are they exempted from the tariffs? The cost to ship the ASICs to the States would definitely be more substantial than having to sell it locally. If the profit margin makes sense, then there isn't any reason to not sell them.

Not sure how much true that info is but if it is then that's actually a good news since earlier China was having the most hashrate on their side contributing to the risk of 51% attack.
Now that China has shut many mining operations the hashrate has been distributed more among the others and we can indirectly say that the network has become more decentralized.

Since Trump was happy to tap into those reserves for fossil fuel, I don't see why it can't also be funneled into other industries. It's actually pretty common that there's always too much gas being wasted (forgot the technical term but there's always too much when drilling for oil that you actually have to burn it). If at least that gas energy could be put into energy-hungry industries like mining, why not?

Not condoning at all the fact that you've to destroy nature but if you're already doing it...

The different US States should actually grant large mining farms some kind of tax reduction, if they establish their mining farms in that State, to draw more miners to relocate to the USA. We all know the Chinese government are going to create their own "GovCoin" soon and then implement regulations that will put restrictions on all other mining operations that are not supporting their "GovCoin"

These operations will then have one of two options.... Relocate to another country where Bitcoin mining is allowed and supported OR keep on mining in their country, but only mine the Chinese "GovCoin"  >:(

US is not known to do things like this. In fact they are mostly pushing away hashrate, not just with taxes but also with laws that are damaging to the reputation and the earning potential of any miner who is going to mine inside US.
The Office of Foreign Assets Control has been going as far as forcing US miners to censor transactions!