A recent research has found that China has lost part of his control over the mining of Bitcoin (BTC), while the united States has gained power. What happens?
Did China release the rudder from the mining of Bitcoin?
The July 15, was a report is published on Medium entitled “Bitcoin Mining Hashrate and Power Analysis” by BitOoda, a global platform of services and financial technology of digital assets, where it is stated that China accounts for only 50% of the capacity of global mining of Bitcoin.
Maybe when you read that China has the 50% capacity mining Bitcoin you might think: “That’s enough!”. However, we should bear in mind that this represents a decrease in the power of the country.
Chart of the geographical distribution of capacity mining Bitcoin for BitOoda.
In fact, it can be compared with the earlier findings by the Center for Alternative financing of the University of Cambridge (CCAF). In this research it was established that China had a market share of 65%.
The new research carried out by BitOoda reveals a different information and worthy of analysis.
“We were unable to locate ~ 4.1 GW of power at 153 mining sites, including 67 sites, or ~ energy capacity of 3GW, with pricing data of energy provided under condition of anonymity,” reads the report.
The report also found that 14% of the mining now comes from the united States. This offers a perspective on the country’s rapid growth as a center of mining Bitcoin.
While Russia, Kazakhstan and Iran account for 8% each, Canada 7%, Iceland 2%, and the rest of the world 3%.
Relationship between the flood season and the growth of hashrate
In this section of the report, the researchers point out that the provinces of southwestern Sichuan and Yunnan provinces face significant rainfall during the months of may to October.
These rains are important because they involve large inflows to the dams. Which, as you might imagine, involves an increase in the production of hydroelectric power during this period.
So, it starts to sell cheap energy because it is beneficial to both the utilities and the miners (not to do it the dams could overflow).
“In our opinion, the flood season moves the cost curve down for 6 months of the year,” he explains. Also, this cost reduction implies “lower sales of Bitcoin to fund the expenses.”
This implies in turn implies that the miners accumulate capital with the objective of financing the growth of capacity.