BTC - China now accounts for 66% of total hash rate
China is king when it comes to mining
A new study released by CoinShares revealed that China now accounts for roughly 66% of the global hash rate.
This is a 10% increase since June when China was said to account for roughly 60% of the global hash rate.
This marks the highest percentage of the total hash rate that China (or anyone else) has recorded in the 2 years since CoinShares has been tracking the data.
Said another way, if China has ever controlled more of the mining market than they do right now, it hasn't been within the past 2 years.
(Source: https://www.blockchain.com/en/charts/hash-rate)
Why the increase?
Most likely the increase is for a couple reasons...
The first and most likely cause of the increase in mining share has to do with better technology.
Chinese companies Bitmain and MicroBT are among the largest manufactures of mining equipment in the world.
Using the latest mining gear would allow Chinese miners to mine more efficiently than their older-generation competitors.
Secondly, China has some of the lowest electricity costs of anywhere in the world.
Due to this, Chinese miners are able to mine bitcoin at a cheaper cost than most.
Recipe for Chinese success?
When you combine the low electricity costs with the latest mining equipment, you have a recipe for a dominant mining industry in China.
As time goes on though, it is likely that the newest mining equipment eventually makes its way into other jurisdictions, thus allowing them to 'catch up' a bit.
For that reason, it is likely that the current 66% of total hash rate that China currently enjoys may not stay that high for much longer.
Others will likely catch up to some degree.
More on the report from CoinShares can be seen here:
Stay informed my friends.
-Doc
They sure love Bitcoin back in China.. Well I'm sure they love any sort of crypto. Atleast they are slowly but surely pulling us into the age of cryptos
Chinese miners like all coins... especially mining new coins during the first week... They and Vietnamese use data centers to mine as many coins as possible, then pay for the exchange listing just so they can cash out all the mined coins. Then they move on to next coin...
I do think another reason for this increase, was China's decision to lift crypto mining out of their black-list (grey-list? ) for industries targeted most for government scrutiny. That said, upon reading this news, I'm somewhat concerned. With 2/3 of Bitcoin's Hash Rate centered around China, any future government crackdowns (e.g electricity theft/over-consumption, permits, pollution, fraud etc. and any other minor excuses ) could spell doom for Bitcoin's network security.
I've been trying to count how many of the scam exchanges are Chinese and I've never managed to count them all... In large country like China, there is always the downside... There is more people taking advantage of the honest people... But good thing about China is that they have so much money that they are giving it free to people like me... American people usually give free money to just other American people...