Posting China Global Capital reports On the changes taking place within bitcoin, China and the Asian giant. Today, most BTC miners in the Chinese province of Sichuan will shut down their machines. This has created another variable in an already uncertain crypto market.
Mining farms in this province will be closed at 0:00 on June 20th. The region hosts one of the largest bitcoin mining operations in the world, 8BTCnews claimed. Thus, some miners expect a dark age for the region to begin with.
8BTCnews claims that the impact of this action has started to spread to the BTC mining sector. The top ten bitcoin mining pools by Hashrate, Antpool, Poolin, Binance, Huobi Pool and others, recorded significant losses in their computing power. These losses go up to 16%, 21%, 25%, and even as high as 31.19% in the last day.
— 8BTCnews (@btcinchina) June 19, 2021
Overall, the average computing power of the Bitcoin network is 129.52 EH/s. Nearly 30% fell from its all-time high. This is reflected on BTC’s mempool and its transaction cost, at the time of writing, sits at some of its lowest levels in 2021 with 19 SAT/Vb ($0.96) for high priority transactions. The minimum fee is Mayavi 1 set/VB.
Bitcoin Mining Outlook, Complete Darkness?
China Global Capital offers an objective view of a situation that can only be interpreted as bearish for Bitcoin. The investment firm claims that although part of the BTC mining operations are shutting down, some will remain.
Furthermore, with a portion of the miners with large side operations already leaving the country, medium and small sized are more likely to remain. The move was expected to be acted upon by the miners from March 2021. Thus, he made the necessary preparations.
With the stated goal of achieving financial stability, Chinese miners intensified their process of emigration to other countries, in the form of a crypto mining ban in May from Beijing, Qinghai, Inner Mongolia and Sichuan.
China Global Capital believes China tackling areas that threaten national economic stability, bitcoin mining and crypto trading with leverage. The country can also target activities that enable corruption at the state level.
The miners have taken 3 measures: they start selling their equipment, stop and see how the rules go, migrate. The investment firm expects the distribution of miners to vary upon the move.
The overseas migration destinations of Chinese miners are diverse, evenly distributed among North America, Central Asia, Russia, Northern Europe, and North Africa. This is really positive and greatly enhances the decentralization of the bitcoin network.
Nick Carter, a partner at Castle Island Ventures, agrees that the migration of BTC’s hashrate from China will bring more decentralization to the network. Additionally, Carter believes that BTC mining activities can be moved to places where they will operate with 100% renewable energy.
Either way, the MSM narrative will likely ignore the climate and decentralization benefits of hashrate migration and focus on the perceived “risk” or “loss of fundamentals” of bitcoin, while ignoring the surprising reality of bitcoin as its industrial base. 50% part is migrating with difficulty.
— Nicolas Cartero (@nic__carter) June 19, 2021
At the time of writing, BTC is trading at $35,562 with sideways movement on the daily chart. On the 7-day and 30-day charts, BTC lost 4.4% respectively.