Mining policy details may be coming down the pike as China’s reckoning is seeking two major destinations in North America and Central Asia

The policy may be about to be landed, and a big change in the mining industry is bound to happen.

Mining policy details may be coming down the pike as China's reckoning is seeking two major destinations in North America and Central Asia

Recently, China’s bitcoin mining industry has been in a state of flux as the State Council’s Financial Stability Development Commission issued a document that mentions cracking down on bitcoin mining and trading practices.

The Inner Mongolia Development and Reform Commission published “Eight Measures to Resolutely Combat and Discipline Virtual Currency Mining” (Draft for Comments), which has caused many practitioners to back off.

In just a few days, although no more provinces have issued policies for the bitcoin mining industry, the topic of computing power going abroad is still the hottest topic in the circle. Should the computing power go overseas? Which country should I go to if I go overseas? Not only miners, but also the entire cryptocurrency industry is concerned about these issues.

China’s arithmetic may have fallen below 50%, Bitcoin arithmetic appears in three global centers
In March, at the 2021 Bitmain Partner Summit, a quote from Zhanke Mission can sum up the current state of the global bitcoin arithmetic market today: the arithmetic landscape is on the eve of a huge change. The scale of overseas arithmetic power is gradually expanding, while mining concept stocks are gradually emerging in the US capital market.

In fact, according to incomplete statistics, since the halving, domestic arithmetic power has gradually decreased from 70% share to 50% of the total global arithmetic power. On the contrary, the share of U.S. arithmetic power rose to about 12%. Russia and Kazakhstan each account for 6% of the total network’s arithmetic power.

This means that Bitcoin’s arithmetic is gradually fracturing from one center in China to three major global centers, China, North America, and Central Asia.

North America is growing even more rapidly. For example, Foundry USA mining pools are rapidly emerging into the global top 10, and it has recently taken on a lot of bitcoin arithmetic from overseas. For example, after Musk’s comments on the energy consumption of bitcoin mining, it was recently disclosed that Musk met with a group of North American mining companies, and the miners agreed to set up a Bitcoin Mining Council (BMC), which is a complete breakthrough in the U.S. arithmetic market seeking a global voice.

In fact, the road to globalization of the mining industry, or Chinese arithmetic, was already open before the recent release of China’s policies for the mining industry. The current policy environment will largely accelerate this process.

Where can China’s arithmetic power go overseas? Good compliance and large scale take precedence
Where can Chinese computing power go to when it is accelerated under policy pressure? The answer is actually relatively obvious. The main direction is North America, the Middle East and Central Asia.

The advantage of North America is the relative stability of policy, high degree of compliance, and good investment environment. The Middle East and Central Asia is mainly the relatively low cost of electricity.

But the disadvantage is not without, North America’s comprehensive cost is too high, the United States has 20% of the tax pressure. The Middle East and Central Asia also have issues including things like policy stability and compliance.

Mint, the founder of Wonder Capital, an early participant in Bitcoin and an investment holding Wonder Mining and other mining companies, told Babbitt that there are difficulties in going abroad, one is the cost issue, and the other is that many domestic miners are actually unfamiliar with offshore policies, laws and local conditions, which requires a familiarization process.

Another senior practitioner analyzed that different miners will have different considerations for going abroad. Large volume miners will be more concerned about compliance, so they will focus on North America, Europe, and Kazakhstan in Central Asia, which are relatively stable and friendly regions. In addition, large-volume miners will also be more concerned about the size of the power in the region they are moving to, like 100,000 kilowatts of load is a threshold.

He also mentioned that there are some small-scale electricity markets available for mining like Georgia, Africa’s Uganda, Angola, Rwanda, and Thailand, but these depend on the choices and capabilities of different individuals.

“Miners going abroad is a market choice that has to be made, but I don’t think people want to take this step until the end. Miners are looking forward to domestic policies, in a very relaxed environment of financial innovation, can give rise to very many excellent enterprises, like chip research and development, mining machine manufacturing supply chain, driving the development of upstream and downstream industries, which may also be overheated because of the industry, in turn backfire on these upstream and downstream enterprises. For example, many hard disk suppliers do not supply hard disk, are taken to mining. Moderate combat overheating phenomenon is necessary for the long-term development of the industry. But we do not want to encounter and 17 years 94 the same sweeping, many people have analyzed a sweeping cut to an industry later, the follow-up is not conducive to regulation, many industry chain ran underwater, but increased the difficulty of regulation.” Mint said.

Policy or about to land, mining industry big changes are bound to happen
27, the National Energy Administration Sichuan Regulatory Office will be held on June 2, virtual currency “mining” research forum on the situation is not the news. To many people, this means that there may be some space in Sichuan. But in any case, China’s mining industry has faced a very unfavorable situation, the risk of policy is obvious. Some practitioners believe that the time for the mining policy to fall into place is likely to be next week.

However, the current industry practitioners on the one hand to seek a way out, on the one hand, or in the hope that the regulation will be landed as soon as possible, to see the specific regulatory rules before making business adjustments.

Mint said, at present the wonderful mine is mainly own funds in mining, they are more optimistic about the future development of a domestic situation, so they are patiently waiting for the policy regulation to land on the one hand, on the other hand, they are also actively promoting the construction of the Canadian mine.

The data from QKL123 shows that the current bitcoin network-wide arithmetic power is currently around 150E. Since the release of the relevant documents, no waterfall plunge has been seen, which may indicate that these documents have not caused a large network-wide shutdown to occur. However, feedback from practitioners is that mining shutdowns exist.

In addition, although the price of coins has plummeted, the price of mining machines has actually not fallen much, and there are many miners with a long-term vision who are still collecting mining machines. Miners have also sold their machines until 2022. Combined with the very limited chip capacity, these two years are still the best second prime time for the mining industry since 2008.

However, according to the mint, the power supply must protect people’s livelihoods and the production of the real industry, this year’s abundant water period may be able to overdo it for everyone, but the dry period must go to sea, and now domestic energy is not enough in the dry period. This means that the practitioners still have a few months to grab a run.

In any case, the de-Chineseization of computing power is an inevitable trend in Bitcoin’s development. Mining is a market-oriented industry, and it will go where it is more stable, lower cost, and has a more complete supply chain. It’s a dynamic balancing and gaming process. But for now, China is still the best choice for mining. It has the most complete mining supply chain, from mining machine chip development, to power supplies, accessories, all the needed electronic components, the world’s most abundant clean energy, and a large number of well-trained miners.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/mining-policy-details-may-be-coming-down-the-pike-as-chinas-reckoning-is-seeking-two-major-destinations-in-north-america-and-central-asia/
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