While the majority of bitcoin (BTC) mining is still located in China, there are signs that the activity has now started to move elsewhere.
As previously reported, Chun Wang, co-founder of F2Pool, one of Bitcoin’s largest mining pools, revealed that in April 2020, China already represented less than half of Bitcoin’s total arithmetic power. Noting that this is the first time in the eight years that F2Pool mining pools have been in operation that they have seen a decline in the arithmetic power represented by Chinese miners, Chun Wang admits.
“The shift is real.”
U.S.-based bitcoin mining pool Foundry has climbed into the top five mining pools in the world in April, accounting for 7.6 percent of bitcoin’s network-wide computing power, according to data released by Barry Silbert, founder and CEO of Digital Currency Group, on April 22.
Barry Hilbert said.
“Bitcoin arithmetic is rapidly shifting from China to North America.”
However, the leading mining pool in the Bitcoin mining market is still the “Chinese player”, AntPool, run by Chinese mining equipment hardware maker Bitmain, which accounts for 18.6 percent of Bitcoin’s total network capacity. The University of Cambridge has calculated that Chinese miners will dominate the market share of the bitcoin mining industry by about 65% in April 2020. According to January 2021 data published by Bitcoin mining industry media Miner Daily, China’s share of computing power in the Bitcoin mining market has fallen to 55% since the beginning of the year. The U.S., meanwhile, accounts for 11 percent.
On April 30, reports emerged that China may set stricter regulations on cryptocurrency mining operations in the future, which could further exacerbate the country’s outflow of computing power. The country also recently began studying the amount of electricity used by bitcoin miners in light of its own carbon emissions commitments. It was also reported in late February that authorities in Inner Mongolia Autonomous Region proposed shutting down all local bitcoin mining facilities in an effort to reduce energy consumption in the region, which currently accounts for 8 percent of the world’s total bitcoin computing power. In late April, the Beijing Municipal Bureau of Economy and Information Technology also issued an “Urgent Notice on Mapping the City’s Data Centers Involving Bitcoin and Other Cryptocurrency Mining Businesses,” which requires that the situation related to cryptocurrency mining involving bitcoin and other cryptocurrencies be sorted out in Beijing’s data center-bearing businesses, and that all relevant units involved in related businesses must provide feedback by 12:00 noon on April 28 on the power consumption and total energy consumption ratio of mining businesses in the past year The information about power consumption and the proportion of total energy consumption in the past year must be provided by 12:00 noon on April 28. In this regard, the Beijing Economic and Information Bureau replied that the notice was indeed issued by the bureau, mainly from the perspective of the type of business and energy consumption carried by the data center to sort out the mapping, for the normal business work of the bureau.
In an article published Wednesday, Bitcoin podcast host Marty Bent said that F2Pool’s findings confirm that the trend of mining arithmetic production in the Bitcoin world is becoming increasingly decentralized. He added that this trend will help dispel some of the “China-controlled mining” market sentiment, with many fearing that centralized mining is bad for bitcoin development.
“It’s great to have some data from Chinese bitcoin mining pools, which proves that bitcoin computing power within China is decreasing as a percentage of bitcoin’s network-wide computing power.”
The issues surrounding Bitcoin’s energy consumption and environmental impact may also decrease as more Bitcoin mining operations shift to renewable energy sources, where regulations set by the U.S. may be more stringent. According to a Nasdaq report on Tuesday, Texas has become a mecca for bitcoin mines due to low local energy costs and the fact that most of it comes from renewable energy sources like wind and solar.
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