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Cyber Bitcoin reported that miners are an extremely important role in the history of Bitcoin development. At present, China ’s proportion in the hash value of Bitcoin is supporting the entire Bitcoin blockchain network with up to 66% of the computing power. China ’s leadership in mining It is difficult to shake, especially the three major mining machine manufacturers are all concentrated in China, but this computing power map may also change in 2020. The United States and Russia are expected to start a large number of mining operations next year.


CoinShares, Europe ’s largest digital asset management company, published a research report that pointed out that China ’s share of bitcoin hashrate continues to rise. Currently supporting the entire Bitcoin blockchain network with up to 66% of the hash power, meaning that nearly two-thirds of the Bitcoin output comes from China.

CoinShares research director Chris Bendiksen pointed out that the surge in China's hashrate value is likely due to its advanced mining hardware equipment.

In fact, China has been occupying a leading position in the global bitcoin mining business for many years. Despite the rapid growth of the hash value in 2019 and repeated record highs, the position of Chinese miners' leadership has always been difficult to shake. In particular, the world's three major mining machine manufacturers Business: Bitmain, Canaan, and MicroBT are all concentrated in China, giving the country's miners a head start.

Except for provinces such as Inner Mongolia, Xinjiang, and Yunnan, Sichuan, which is a mining powerhouse, grabs nearly 50% of the global hash rate. Thanks to the unique hydropower resources of Sichuan Province, China, the electricity cost that accounts for the highest proportion of mining costs is relatively low. Jiang Yang, a former vice-chairman of the China Securities Regulatory Commission (CSRC), called at a consultation meeting at the end of October, hoping to further study how to configure a sophisticated dispatch to attract miners.

U.S. and Russian rivals

However, countries such as the United States and Russia are also expected to start investing heavily in mining operations in 2020, and the hashrate may also be reallocated.

For example, Bitmain has just recently built a large-scale mine in Texas, with a total capacity of up to 50MW, and is expected to increase its power generation to 300 MW in the future. The US blockchain startup Layer 1 is only in two announced a few months ago that mining will be carried out with cutting-edge hardware equipment and cooling systems independently developed to reduce dependence on mining machine manufacturers such as Bitmain.

In addition, the mining company RMC, a Russian Internet monitoring agency, also plans to build a mine in the Republic of Karelia. The company's CEO Dmitry Marinichev also claimed that once the system and the site are set up, they will capture the bite in one fell swoop. A hash value of nearly one-fifth of a coin.

China supervision

It is worth noting that, despite the importance of Chinese miners, the Chinese government still considers cryptocurrencies as a source of social disorder. And because the country ’s central bank digital currency (CBDC)-the digital yuan (DCEP)-is being launched soon, so even the authorities it has been decided to mobilize the nation's efforts to launch an innovative breakthrough in blockchain, and the development of cryptocurrencies in China is still bleak.

What is confusing, however, is that China ’s National Development and Reform Commission (NDRC) released the “Industrial Structure Adjustment Guidance Catalogue (2019 Edition)” in November to change its previous attitude. The accidental removal of virtual currency mining classified as "eliminated" in the "Draft" has also left the outside world in a haze, unable to clarify the Chinese government's attitude towards mining business?

In general, as Chris Bendiksen said, who can prioritize control over the influence of the hash value? It must have an advantage in a highly competitive industry such as mining. With the upcoming halving of Bitcoin rewards, major mining machine manufacturers are rushing to work on a new generation of hardware equipment. It is conceivable that the speaking power of the mining industry in various countries may change.


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