China controls much less Bitcoin Energy (BTC) than people thinkAccording to a new survey.
The survey was released on July 16 by wealth manager Fidelity and crypto research company BitOoda China is really responsible for around 50% of Bitcoin mining, not 65%.
Much of China’s Bitcoin mining capacity “is not taken into account”
Analysts used what they called various sources, as well as “confidential talks” with the miners. They agreed to disclose information on aspects such as energy costs if they remain anonymous.
“We were able to locate ~ 4.1 GW of electricity at 153 mining locations, including 67 locations or ~ 3 GW of electricity capacity. Energy price data was provided on an anonymity basis.” Summarized in an attached blog post.
BitOoda discovered that too 14% of the mining now comes from US. However, estimates in China have been difficult to confirm and the 50% figure is still open to interpretation.
“Our discussions make us believe that We have most of the capacity in the United States, Canada and Iceland, but only a small part in China and in the “Rest of the World” category. “The blog post continued.
As Cointelegraph reported Earlier estimates of the Chinese stake in Bitcoin put its capacity share at around 65%.
Geographical distribution of the examined mining capacity compared to the estimated total capacity of 9.6 GW. Source: BitOoda
Is America’s “Hash War” Approaching?
The survey found more information, such as the impact of the Chinese floodor the “hydro” season in the miners’ income.
For six months a year, miners in provinces like Sichuan sell less Bitcoin to cover about half a year of spending.
“We argue against it conventional wisdom indicating that low energy prices are driving hashrate growth during the flood season “, it says in the blog post.
“In our opinion, the flooding or hydropower season shifts the cost curve down for 6 months a year, which results in a decrease in Bitcoin sales to finance operating costs as miners accumulate capital to finance capacity growth.”
According to an attached table, The average price increase fluctuates inside and outside the hydropower plants, while the growth of the bitcoin network hash rate remains stable.
Hash diagram vs. BTC price separated by flood and dry season. Source: BitOoda, Blockchain.com, Kaiko, Coinmetrics
Miners have faced the elements in Sichuan and elsewhere and in recent years Several reports of massive device destruction due to flooding have been received.
The TFTC content aggregator was optimistic about the future with regard to the US problem. “”It is incredible to see that the US already accounts for 14% of the hash rate, and I hope this number increases significantly. “Staff member Marty Bent wrote after the survey was released.
Recently the moderator of RT Max Keizer said he was convinced that the US would get more and more hashes in a three-way battle in a “global hash war” of Bitcoin. not with China, but with Iran and Venezuela.
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