[2020-06-11] China is losing its dominance over Bitcoin mining industry: report

[bbc.reporter]

This is good news if China's domination on mining goes down, however, I am not convinced. This might only be a small adjustment after the halving before going back to normal.

In any case, the miners in China should begin to find other countries with cheap electricity. I speculate war coming in the South China sea region and this might change the political landscape that might become unpredictable for local and foreign businesses.



TokenInsight cites data from Cambridge University’s Centre for Alternative Finance, which estimates that the overall electricity usage of Bitcoin miners that comes from China had fallen from 75.63% in September 2019 to 65.08% by the end of April.

Cambridge’s estimations provide a rough indication of the hash rate produced by China, Johnson Xu, chief analyst at TokenInsight, told Decrypt.

In the same time frame, Cambridge’s data shows that electricity consumption from Bitcoin miners in the US has increased from 4.06% to 7.24%. Bitcoin mining in Kazakhstan also appears to have boomed: back in September, Kazakhstan’s mining industry accounted for 1.42% of the hash rate; by May 7, it accounted for 6.17% of the hash rate.

Xu said that miners are leaving China to set up shop elsewhere. “The mining landscape in China is quite unstructured,” he said, “limiting opportunities to access capital.”

Read in full https://decrypt.co/31915/crypto-bitcoin-china-mining-industry

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[hv_]

Fragmentation happens by full open exposure to many (op-) risks

this helps for Bitcoin's decentralization character ( PoS = Proof of Shit - cause that does not have such nice 'feature')

This 'news' might be also of interest / connected


https://decrypt.co/31693/binance-is-still-accessible-from-china-says-report

[Lucius]

In any case, the miners in China should begin to find other countries with cheap electricity. I speculate war coming in the South China sea region and this might change the political landscape that might become unpredictable for local and foreign businesses.

Constant proponents of the possible conflict in the South China Sea do nothing but repeat the same things every year at about the same time. It's even worse that you use the word war, which would last how long if China went to war with one of the countries like Taiwan, Brunei or Vietnam? No one is so stupid as to go to war with one of the world’s greatest military powers, but I'm sure some would be very glad if such a war really happened.

I think the mining thing is being overemphasized for the purpose of emphasizing the halving that has passed, but it is not as many expected made a big boom. Things need to be seen in a broader context, post-halving adjustments are still ongoing, and there have been reports that the rainy season in certain parts of China is late, meaning there is a lack of cheap hydropower. China is not a crypto friendly country when it comes to trade, but there is nothing against mining and manufacturing devices for the same.

[bbc.reporter]

@Lucius. However, the present situation might be different today since the beginning of the coronavirus pandemic. The movement of the American military has changed because the Chinese military has been more aggressive on the South China sea.

Also, the domestic pressure on Trump is high. This might cause him to be more desperate and might declare war, I reckon. There is 4 months before the United States election. Let us wait.

[buwaytress]

Also, the domestic pressure on Trump is high. This might cause him to be more desperate and might declare war, I reckon. There is 4 months before the United States election. Let us wait.

This makes completely no sense. He's practically at war right now, he'd get revolt if not all out rebellion in the military if he were to go out and actually declare war.

I'm from Southeast Asia and I know that not a single country contesting claims with China will ever go that far. As Lucius says, it wouldn't last a week. ASEAN is not going to switch from appeasement to belligerence overnight. And for what?

[Lucius]

@Lucius. However, the present situation might be different today since the beginning of the coronavirus pandemic. The movement of the American military has changed because the Chinese military has been more aggressive on the South China sea.

Also, the domestic pressure on Trump is high. This might cause him to be more desperate and might declare war, I reckon. There is 4 months before the United States election. Let us wait.

To be honest, no move, no matter how crazy or dangerous, would surprise me when it comes to Trump. But any war at the moment is of no interest to anyone because of the global economic situation. It is easiest to start a war, but it is extremely difficult to finance military ventures. China knows its limits very well, just as the USA knows them - and all you can see is actually a game of cat and mouse. If these two forces got into some serious military conflict, it would be much worse than a pandemic, because that would probably be the beginning of World War 3.

If we think logically, decentralization of mining power is something absolutely desirable and in the interest of all of us. But there are reasons why, according to some, almost 3/4 of all miners are in China. Cheap electricity, cheap labor, cheap infrastructure and the blessing of the Communist Party to carry out such operations. If similar or better conditions occur somewhere, some miners will certainly migrate (as is already the case), but it is a process that will take some time.

[Ozero]

Chinese miners have been leaving this country for several years due to the unfriendly policy of their government towards cryptocurrencies and are moving to more suitable places for cryptocurrency mining, such as Canada, Belarus, Kazakhstan and others. The dominance of one state in any industry and type of activity carries certain risks. Decreasing the dominance of China in the issue of bitcoin mining, I consider it a positive process for cryptocurrency. The future of cryptocurrency should not depend on the actions of the government of one state, especially if it has been taking certain measures for several years to combat it.

[Harlot]

In any case, the miners in China should begin to find other countries with cheap electricity. I speculate war coming in the South China sea region and this might change the political landscape that might become unpredictable for local and foreign businesses.

Isn't this old news already?

Chinese Miners Negotiate With Iranian Leaders to Set Up Mining Operations in the Free Trade Zones
Big Chinese Bitcoin Miners Are Turning to Canada

From what I know after the 2017 bull run a lot of Chinese mining firms are already trying to migrate out of China in order to find cheaper electricity or a better legal status in crypto mining for the longevity of their operations so I wouldn't be surprised if they are losing their grip in their own mining firms. I mean we have seen news some mining farms being flooded in China so there is also a factor of them losing their strength in that department. If their own government doesn't love and support them then I don't think they will really decide to stay for long running their operations in China because other countries are giving a better alternative.

[bbc.reporter]

@Lucius. However, the present situation might be different today since the beginning of the coronavirus pandemic. The movement of the American military has changed because the Chinese military has been more aggressive on the South China sea.

Also, the domestic pressure on Trump is high. This might cause him to be more desperate and might declare war, I reckon. There is 4 months before the United States election. Let us wait.

To be honest, no move, no matter how crazy or dangerous, would surprise me when it comes to Trump. But any war at the moment is of no interest to anyone because of the global economic situation. It is easiest to start a war, but it is extremely difficult to finance military ventures. China knows its limits very well, just as the USA knows them - and all you can see is actually a game of cat and mouse. If these two forces got into some serious military conflict, it would be much worse than a pandemic, because that would probably be the beginning of World War 3.

If we think logically, decentralization of mining power is something absolutely desirable and in the interest of all of us. But there are reasons why, according to some, almost 3/4 of all miners are in China. Cheap electricity, cheap labor, cheap infrastructure and the blessing of the Communist Party to carry out such operations. If similar or better conditions occur somewhere, some miners will certainly migrate (as is already the case), but it is a process that will take some time.

I disagree. If there is a rising superpower similar to China that is beginning to challenge the established superpower, America, the majority of these situations, a war has occured. This is another occurence of Thucydides trap beginning.

[bbc.reporter]

It appears that there might be machines outside of China that are always waiting and ready for a drop in hashrate hehehe.



In the wake of the Bitcoin halving, the hash rate of the network dropped dramatically.

Due to an effective 50% decrease in profitability, around 30% of the machines mining BTC went offline from peak to the bottom of the trough, slowing transactions down and causing an increase in transaction fees.

But as blockchain data firm Coin Metrics observed on June 14th, the hash rate has since recovered.

It is unclear if the uptrend that Bitcoin’s hash rate has found itself in since the halving will continue though, with there being news that a large mining farm in China has recently had to shut down due to a large fire.

Source https://www.newsbtc.com/2020/06/14/bitcoin-hashrate-halving-chinese-farm-burns/