Bitcoin is down 6.55% over the past 24 hours to $33,068 and is down 17.66% for the week. And this withLarge-scale crackdown on Bitcoin mines and transactions in Chinahave a direct relationship.
The crackdown, which began in late May, immediately led to a 30% drop in the price of Bitcoin and billions of dollars in losses across the cryptocurrency industry. So far, many bitcoin miners, including those in Inner Mongolia and Sichuan, have been forced to permanently close their mines, and many have relocated operations to overseas regions that are more conducive to bitcoin mining.
On May 21, domestic high-level officials officially stated thatChina will become the first country in the history of cryptocurrency to suspend cryptocurrency mining and trading activities。
and the reason for the shutdown isEnergy consumption due to Bitcoin mining, Bitcoin mining in China uses more electricity per year than the Netherlands.
China has been looking for ways to reduce carbon emissions, and Bitcoin mining still uses fossil fuels as the main source. According to statistics, due to the shutdown of mining platforms, 8,000 megawatts of electricity have been restored in China.
At the same time, mining companies may relocate to North America and Europe. In addition to hurting bitcoin prices, the crackdown has also led to a sharp drop in the price of cryptocurrency mining equipment in China, which is already the world's largest producer and exporter of mining equipment.
“In the longer term, with Chinese regulators cracking down on mining at home,Almost all crypto mining platforms in China will relocate overseas。”
Before the crackdown, China accounted for more than 70% of the total global mining hash rate, but the current shutdown will eventually distribute the hash power to foreign markets, especially North America and Europe.
Some analysts predicted that this would be good news for bitcoin, whose price and computing power are often heavily influenced by domestic mining trends.
Crypto investor Lark Davis stated on Twitter: "We are going through a huge miner restructuring, the largest and most serious crackdown in China's history.A new geographical distribution of computing power is expected to emerge in the coming weeks。”
At present, bitcoin mining machines weighing more than 3 tons have been shipped from China to the United States, and Texas may accept some Chinese mining companies.Texas is one of the top addresses for U.S. mining companies, its affordable energy prices and huge investments in renewable energy account for 20 percent of the U.S. energy supply.
The mayor of Miami also launched a plan to turn the city into a bitcoin mining hub in late May.
A new report from the South China Morning Post suggests that GPUs are selling at a hefty premium in early 2021. Six months later, after the crackdown, GPU prices have dropped by about 66%. Meanwhile, in Australia, the stock market for GPUs has corrected by 5-10% as the mining sector in the region starts to heat up.
There are many factors that will influence miners to choose a new mining farm, the first being the low cost of electricity. Since mining is an energy-intensive industry, energy prices must be low enough for miners to be profitable, which meansThe new location must have lower energy costs。
Another factor is the supply chain, which hasEstablished technical management, and stable mining machinesThe original text comes from zycrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
The original text comes from zycrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
