China has the world’s largest concentration of Bitcoin miners. It is estimated that the country captures between 50 and 65% of the global hashrate. Xinjiang, the autonomous region of the People’s Republic of China, is said to be home to 35% of the hashrate. This week, a regional report from China and statements from the Genesis Mining operations manager show that Chinese miners are migrating from the region to Nordic countries like Sweden and Norway.
Just recently, news.Bitcoin.com reported on the electrical problems in China that Bitcoin miners in the country are currently facing due to the lack of coal. The report found that the Cambridge Bitcoin Electricity Consumption Index (CBECI) map shows that China still owns 65% of the hashrate today. However, a team member at the Cambridge Center for Alternative Finance (CCAF) told news.Bitcoin.com that the CBECI card is out of date and will be updated in 2021.
Back in July, it was said that China is steadily losing its concentration of Bitcoin hash power and the country is sinking to 50%. The Hashrate Report, authored by Bitooda, states that US Bitcoin mining capacity has increased to 14% in the past few months. Iran accounts for 8%, Canada 7%, Iceland 2%, and Russia and Kazakhstan also 8% of the global hashrate.
On December 30, 2020, 8btc finance columnist Iyke Aru stated that Chinese bitcoin miners are moving from China to Nordic countries.
Aru reports that bitcoin miners in China in the early days enjoyed the country’s lack of regulations and extremely cheap electricity tariffs. However, in recent years, Aru said that China’s communist government had set up “regulators” and “tough measures against cryptocurrencies” and mining operations in China were being affected.
“Bitcoin mining is gradually shifting its base,” notes Aru’s report. “With the concentration in China, miners have begun a gradual but steady migration to countries that offer friendlier conditions for their industries.”
Philip Salter, operations manager at Genesis Mining, has confirmed Aru’s statements regarding the move of Chinese miners to the Nordic countries. Salter stressed that China’s miner migration is currently one of the “biggest developments” in the Bitcoin industry. The chief of operations at Genesis Mining said the move was due to miners seeking financial security and “political stability.”
“There is a very important strategic shift from mining in China to mining in western countries like Sweden as Bitcoin investors become more public and want more stability and critical security,” Salter said.
Aru’s report highlights the recent electrical issues that Chinese bitcoin miners from Yunnan Province have faced recently. In addition, since China has banned the exchange of cryptocurrencies, there are “complicated problems for miners who cannot easily convert their mined bitcoins into fiat to pay for services like electricity”.
In the Nordic countries, Aru said, Chinese companies are drawn to “greener energy”. The advantages of countries like Sweden and Norway over China, along with the complications of the communist government, “are pushing Bitcoin miners away from China,” concludes Aru’s report.
What do you think of Chinese bitcoin miners migrating to Nordic countries like Sweden and Norway to create a friendlier mining environment? Let us know what you think on this matter in the comments section below.
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Bitcoin Miners, Bitcoin Mining, Bitooda, CBECI Card, China, China Miners, Chinese Bitcoin Miners, Coal, Scandinavian Countries, Electricity, Genesis Mining, Iyke Aru, Migration, Migration, Bitcoins Mining, Mining, Nordic Countries, Nordic regions, Philip Salter
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