Cambridge data shows Bitcoin mining on the move

New data shows that China’s Bitcoin mining volume had fallen sharply before the government’s recent crackdown.

The Cambridge Centre for Alternative Finance (CCAF) study found that China’s mining share dropped from 75.5% in September 2019 to 46% in April 2021. Kazakhstan is the third largest Bitcoin mining country. Miners make money by creating new bitcoins, but the calculations used to consume a lot of energy.

They verify Bitcoin transactions in exchange for the ability to buy digital currency. This requires huge computing power, which in turn consumes a lot of electricity. However, it makes a significant contribution to global emissions.

The Cambridge Bitcoin Electricity Consumption Index compiled by CCAF shows that at the time of writing. Moreover, Bitcoin consumes almost as much electricity annually as Colombia. Fight against Bitcoin.

China moves

The authorities have ordered banks and payment platforms to stop supporting Italian currency transactions that caused prices to fall. The CCAF data covers the period before the austerity measures.

But shows that China’s share of global mining had fallen sharply before the Chinese authorities took action.

Researchers from the University of Cambridge found that after the crackdown. And all the mining machines in China disappeared overnight, indicating that the miners and their equipment are moving.

Experts say that miners are highly mobile. Miners use mining equipment to pack and transport containers, said David Gerrard, author of the book “50-foot Blockchain Attack”. So they are essentially mobile computing data centers.

And now they are trying to ship them out of China “…It is not yet clear where they will go, but even before the dispersion, the geographical environment of production has changed.

In Kazakhstan, rich in fossil fuels, the mining industry has grown nearly six-fold, with its share increasing from 1.4% in September 2019 to 8.2% in April 2021. According to the US Department of Commerce. In Kazakhstan, electricity is “generated from fossil fuels,” of which coal accounts for more than 70%.

The country is currently the third-largest bitcoin miner after the United States, and it has also significantly increased to 16 in the global mining industry.

Raining money

The data also shows the close connection between cheap energy and Bitcoin mining. Researchers have found that due to the so-called hydropower supply, production between Chinese provinces will change seasonally.

From Xinjiang in the dry season to the lush southern Sichuan in the rainy season. The researchers pointed out that “this seasonal migration has significantly affected the energy situation of China’s bitcoin mining.”

Moreover, adding that this illustrates that the difficulty of assessing the environmental impact of mining. Sichuan banned Bitcoin mining in June.

 

Image courtesy of Cointelegraph News/YouTube

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