Mining out of the big survey: greater decentralization of computing power, China’s computing power in the global share of more than 25% is difficult
Since the gradual implementation of the ban on cryptocurrency mining in several places in China in June this year, some of the original domestic miners of all sizes have established new mining positions overseas. How has bitcoin arithmetic changed during the period when miners have gone overseas? Where does the future lie for miners?
In this, the third installment of the Mining Abroad survey series, Gyro Finance has invited the head of Slush Pool to talk about the future and the way forward for cryptocurrency and related industries.
In terms of politics and resources, Russia and Canada have better mining conditions
Slush Pool: China has undoubtedly been the most suitable region for mining in the world in the past few years, but the recent policy reasons for miners to go to sea have been unavoidable. In the past two months, Chinese miners are running around the world, looking for sites, from the recent feedback, Russia and Canada are the regions with better conditions, Russia has nuclear power and water resources, Canada has good regulatory policies and rich water resources, these two countries are politically stable compared to small countries in Central Asia, Southeast Asia, and relatively rich in resources.
China’s transportation and power industry revenue affected by miners going to sea
Slush Pool: As miners go to sea, the traditional manufacturing, transportation, and electricity industries in China will be affected in the future. Because the domestic electricity resources available for mining purposes are currently very scarce. There is no good way to solve these problems, except to wait for the global mining market to regroup.
The decentralization of computing power is greater than ever, and China’s share of global computing power is hardly more than 25%.
Slush Pool: In the short term, Bitcoin’s arithmetic power has fallen from a peak of 180EH to a low of 90Eh, and has now rebounded to 120EH. The drop in arithmetic power across the network is only short term, and with the gradual deployment of arithmetic power from overseas mines coming online, Bitcoin’s arithmetic power is still stable and healthy, but more decentralized than before, which is the biggest benefit. The global share of China’s computing power will hardly exceed 25% in the future, unless there is a major policy shift.
The Future of Mining Will Become Diverse
Slush Pool: The future of the Bitcoin mining market will be further consolidated. In addition to the distribution of computing power around the world, mining will become more geothermal, wind, and even solar in the future as the scale becomes smaller and the distribution more flexible, and the management of mining farms will also be diversified. For small-scale mining farms, the choice of firmware for mining machines will also be diversified. And mining machine manufacturers will also set up more services overseas to meet the needs of miners.
Mining companies cannot hold coins stably
Slush Pool: Mining businesses are not the same as traditional tech businesses. The only source of income for mining companies is the revenue generated by the miners, and they usually also need to face the problem of paying back the capital for the construction of miners and mining farms. Even in some places these companies need to use the mining revenue to repay loans for expanding their production scale, and if there is no continuous power and energy to support these companies, they will also be forced to sell bitcoins and cannot hoard coins with the same peace of mind as Tesla and MicroStrategy.
The above has been confirmed by Slush Pool. What other effects will domestic miners going offshore have on cryptocurrencies and related industries? Gyro Finance will collect more voices, so stay tuned.