Some analysts told the Daily Economic News reporter that if any major blow to the Sichuan Bitcoin mining pool would affect the global hash rate, it further stated that Chinese miners still dominate the cryptocurrency, while China’s bitcoin digging The mining industry has a 'key human risk' for the entire bitcoin industry (ie, the risk of losing a key person will be a devastating blow to the collective).
At present, China is almost monopolizing the bitcoin mining industry. According to iResearch, the global Bitcoin mining machine manufacturing market is dominated by the three major manufacturers of Bitian, Jianan Gengzhi and Yibang International, and all three major manufacturers are Chinese companies, in 2017, the total sales revenue and sales of the three companies accounted for 90% of the world.
A bitcoin industry research report from Cambridge University in April 2017 showed that 58% of the world's bitcoin mining plants are located in China, while the second-ranked US only accounts for 16%.
Mining is prevalent in China, and a large part of it is due to the huge demand for electricity in the industry, while domestic electricity prices are lower than those in some countries.
From the point of view, there is no more leap in the iterative aspect of the chip. 'The current competition is no longer the ability to compare a single chip, but how many chips a mine can plug in, and handle the problem of heat dissipation and power supply. 'The industry even circulated such a saying, 'Power determines the power, and the power determines the wallet'.
//s3.pfp.sina.net/ea/ad/2/7/9faae4e4117c3eca4e10f58b420b67ca.jpg According to a report by Morgan Stanley in May this year, high energy demand is also a challenge in the Bitcoin industry, as mentioned in the report. The POW (Proof of Work) calculation method used to secure bitcoin transactions has a huge demand for electricity.
Affected by some of the above factors, China has tightened the relevant policies for bitcoin mining. According to relevant reports, in January this year, the Mujin Remediation Office issued documents to all localities, requesting comprehensive measures such as electricity price, land, taxation and environmental protection. Guide enterprises within the jurisdiction to order the bitcoin mining business in an orderly manner, and regularly report the progress of the work.
According to reports, large domestic mines have begun to transfer some of their business to countries with similarly low electricity tariffs in Canada, Iceland, etc. For example, Bitmain, which operates China's two largest bitcoin mines, has established branches in Singapore. And in the United States and Canada to carry out mining operations. In January this year, the founder of the Leipzig pool (BTC.Top) Jiang Zhuoer also said that the company is opening a branch in Canada, because the cost of operating the mine in Canada is relatively high Low and stable.
Some small mines are also flexible in finding a living space. The operators of a small mine said to the reporter of the Daily Economic News that 'the place was not in the past, but also changed from hydropower to electricity.'