Chinese bitcoin mining power disappears at night

Chinese mining forces disappeared overnight after the crackdown, according to a study by the Cambridge Alternative Finance Centre (CCAF). It also shows that China’s share of global bitcoin mining has fallen since 2019. 

An article published by the BBC Today shows that “bitcoin mining is on the move” after pressure from the Chinese government. April September 2019, from 75.5% in April this year, China’s mining share has fallen to 46%, it says. New migrations from several Chinese provinces will now significantly reduce that figure. 

A significant amount of energy is spent creating new bitcoins, which comes in the form of computational power fed by a large amount of electricity. The CCAF bitcoin Electricity Consumption Index shows that the electricity consumption for Bitcoin mining is almost equal to that used by Colombia every year. 

The CCAF data highlights that bitcoin mining in China has been on a decline long before the recent hard-hitting pressures in June. The crackdown took the form of an order by authorities to stop banks and payment platforms from supporting cryptocurrency transactions. 

Once this decree was corrected, it caused the already diminishing power of bitcoin mining to “disappear”overnight, suggesting that miners and their equipment were on the move.” 

These miners seem to be very mobile. According to David Gerard, author of the book “attack on a 50-Foot Blockchain””: 

“Miners are packing shipping containers with mining facilities so they’re mostly mobile computer data centers and now they’re trying to ship them from China.” 

One of the places highlighted in the BBC article, where there has been an almost 6-fold increase in Bitcoin production, is Kazakhstan. However, the main source of energy for mining here is coal, which is clearly a very dirty source of energy. 

Kazakhstan currently ranks third on the list of countries producing the largest number of bitcoins and has the United States

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