China is the country with the highest concentration of Bitcoin miners in the world. It is estimated that the Bitcoin captured in this country accounts for 50-65% of the global hash rate. Xinjiang is an autonomous region of China, which can accommodate a 35% hash rate on the surface. A regional report from China this week and a statement from the head of Genesis Mining indicate that Chinese miners are migrating from the region to Nordic countries such as Sweden and Norway.
Just recently, news.Bitcoin.com reported on China’s power problems, which Bitcoin miners are currently dealing with due to coal shortages. The report pointed out in the report that the Cambridge Bitcoin Power Consumption Index (CBECI) map shows that China still accounts for 65% of the hash rate today.However, the team members of the Cambridge Centre for Alternative Finance (CCAF) Explanation Go to news.Bitcoin.com, the CBECI map is not up to date and will be updated in 2021.
As early as July, it was reported that China was steadily losing its concentration of Bitcoin hashing power, while China had fallen to 50%. The hash rate report written by Bitooda stated that in recent months, Bitcoin mining capacity in the United States has jumped to 14%. Iran accounted for 8%, Canada accounted for 7%, Iceland accounted for 2%, Russia and Kazakhstan also accounted for 8% of the world’s hash rate.
On December 30, 2020, Iyke Aru, a financial columnist from 8btc, explained that Bitcoin miners in China are migrating from China to Nordic countries.
Aru detailed that in the early days, China’s Bitcoin miners had been lacking regulations and that electricity prices in the country were extremely cheap. However, in recent years, Aru said that the Chinese Communist Party government has deployed “regulatory agencies” and “takes strict measures against cryptocurrencies” and has affected China’s mining industry.
“Bitcoin mining is gradually shifting the foundation,” Aru’s report noted. “Starting from being concentrated in China, miners have begun to gradually but steadily migrate to countries that provide more friendly conditions for their industries.”
Philip Salter, head of operations at Genesis Mining, confirmed Aru’s statement that Chinese miners moved to Northern Europe. Sartre emphasized that the immigration of miners in China is currently one of the “biggest developments” of the Bitcoin industry. The head of operations at Genesis Mining stated that the movement was caused by miners seeking financial security and “political stability.”
Salter elaborated: “As Bitcoin investors have become more public and want more stability and critical security, a very important strategic shift has taken place from the mining industry in China to the mining industry in Western countries such as Sweden.”
Aru’s report continues to highlight the recent power struggles that Chinese Bitcoin miners from Yunnan Province have been dealing with. In addition, since China has banned cryptocurrency transactions, it “causes trouble for miners who cannot easily convert the mined bitcoins into legal tender to pay for services such as electricity bills.”
Aru said that in the Nordic countries, Chinese operations have attracted “eco-friendly green energy.” Aru’s report concluded that the benefits of countries such as Sweden and Norway, plus the troubles of the Chinese Communist government, are “driving bitcoin miners out of China” compared to China.
What do you think of the migration of Chinese Bitcoin miners to Nordic countries such as Sweden and Norway in order to obtain a more friendly mining environment? Let us know your thoughts on this topic in the comments section below.
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