Over the past few weeks, there have been several reports about crackdowns involving bitcoin mining operations in various provinces in China. The 30-day data shows that the hash rate has fluctuated wildly, with a drop of nearly 26% over the past week.
Report shows bitcoin mining crackdown in five Chinese provinces
Despite the slide, the top three mining pools in the world, which today represent about 41% of the hash rate, are considered Chinese mining pools. This does not mean that mining pools actually host physical bitcoin mining facilities in mainland China, however.
How much hash rate lives in China is a million dollar question these days. Especially after Beijing’s crackdown on the mining industry and the following sanctions in several provinces.
Mandates first appeared in Inner Mongolia, as reports Came out during the first week of March 2021. Then on June 9, 2021, a report revealed that there were specific bitcoin miners in Xinjiang. instructed to close.
Then, while everyone was waiting to hear about Sichuan, following 31st May report The one who informed the public that a meeting was taking place finally got the news. officials in sichuan notice sent Bitcoin miners in the province to shut down by June 25.
Defects found in existing hashrate reference maps and estimates
The hashrate chart over the past seven days shows that the bitcoin network hashrate has slipped and is currently hovering a hair above the 100 exhash per second (EH/s) area. The point is, no one is quite sure how much hash rate resides in China, and how many operations are forced to migrate.
Several mainstream reports pointed to the Cambridge Center for Alternative Finance Index Map, otherwise known as the CBECI. beyond belief CBSE Map Not updated since April 2020 and the map shows 65% hash rate in China.
The estimation also has significant limitations in the CBECI data, as it aggregates data from only three large pools and “aggregate geo-location data based on the IP addresses of hashers connecting to the mining pools.” cambridge forward notes That “hashers in some locations use virtual private networks (VPNs) or proxy services to disguise their IP address and thus location.”
In addition, at any given time, a large number of stealth miners are known to have dedicated hashrate. B T c Network. These stealth miners, otherwise dubbed as “unknowns” in the hash distribution pie chart, make about 6% The network’s hash rate for this weekend. Sometimes, over the years, mystery miners have collected more than 20% of the hash rate.
Web portal Digiconomist.net Similar, as it shows an unreliable chart with hashrate shares of the bitcoin network, but this too has not been updated since April 2020. In China, Digikonomist.net’s survey shows operations in Beijing, Nei Mongol, Guangdong, Qinghai, Yunnan, Sichuan. , Shanxi, Guizhou, Gansu, Ningxia, Shaanxi, Zhejiang and Hebei.
there is also one published studies From Coinshares, which highlighted that 74% of the world’s bitcoin mining operations in 2019 were powered by renewable energy in-depth report It surveys several mining locations around the world and includes a map.
The CoinShares map is fairly basic but suggests the general idea that there is a large proportion of miners in China, and Sichuan in particular. We still don’t have an up-to-date percentage of how many miners are located in China between the CBECI map, the digiconomist.net chart, and the Coinshares report.
However, there is a recent report Published by Bituda with the support of asset manager Fidelity Investments, as of July 15, 2020, reduces China’s hash rate by 50% from previous estimates.
apart from this, misconceptions about Digiconomist.net has been found to be underpinning the data. In 2018, another Coinshares’ Study was criticized for Digiconomist’s BECI and noted that there was a large discrepancy with respect to the total energy consumption data.
hashrate distribution and ostensible HQ
Finally, the public has access to data on hashrate distributions by pool names. The top five major mining pools today are Antpool, YBTC, F2Pool, BTC.com and Poolin. In terms of hash rate, the bottom of the pool is Binance Pool, an unknown entity, and Foundry USA, respectively.
Measuring data this way is flawed because not all pools are difficult operations, as many pools are a mix of hashpower from physical facilities and miners around the world pooling computing power with the pool. There is no known location for Binance Pool and Poolin says its operations are headquartered in Hong Kong.
Poolin’s website details that it has offices in Beijing, Chengdu and Changsha, China. Bitmain’s Antpool says it is headquartered in China, and records from Viabtc and F2pool (formally known as Discus Fish) also show its headquarters in China.
Records from Btc.com indicate that the mining company is headquartered in Amsterdam. Roughly 41% of hashrate can be assumed to come from the Chinese pool, but we cannot be sure how much of this hashpower actually stems from mainland China.
As stated earlier, Chinese bitcoin mining pools are not necessarily located in China. The fact is, finding out how much of a bitcoin hashrate remains in mainland China is still an enigma. See the follow-up to this comprehensive report covering the entire landscape of bitcoin hashrate distribution over the past 12 years.
What do you think about the geographical location of the miners? What do you think is the hash rate in China? Let us know what you think about this topic in the comment section below.
image credit: Shutterstock, Pixabay, WikiCommons, Bituda, Fidelity, CoinShares, CBECI, BTC.com, Digiconomist.net, Coinwarz,
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