New study shows a decrease in electricity consumption among Chinese Bitcoin miners
According to a new study by the Center for Alternative Finance at Cambridge University, China's dominance in the bitcoin mining sector has waned in recent months.
The study was first picked up by cryptanalysis company TokenInsight and found that China's share of total bitcoin mining power consumption fell from an estimated 75.6 percent in September 2019 to 65 percent in late April.
Although China remains the most important nation when it comes to mining the world's most popular cryptocurrency, other nations have accelerated the pace. The Kazakh mining industry appears to have been booming. Their share of the crypto hash rate rose from 1.4 percent in September to 6.1 percent in May.
China's largest trade, the United States, also saw an increase in activity. The estimated proportion rose from 4 to 7.2 percent in the eight-month period investigated by Cambridge.
One might doubt the usefulness of the study, as its results were based on well-founded estimates, but it corresponds to a growing trend in the Bitcoin mining world.
Although the nation has dominated and continues to dominate bitcoin mining for some time, the fact that it hit the mark early on is beginning to speak against it. Many of the machines used by Chinese miners are quickly becoming obsolete, and Bitcoin's recent halving has done nothing to relieve the pressure on them.
For such a revolutionary and innovative technology, Bitcoin mining in China is still affected by the changing seasons. With the start of the rainy season, miners in northern China started migrating south to provinces like Sichuan, where hydropower is cheap.
Although this abundance of cheap electricity temporarily accelerates BTC mining, investments in new machinery are no longer encouraged, which turns out to be a temporary solution.
As the Chinese government is less hostile to BTC mining, there is hope for a revitalization of the sector in the world's second largest economy. The recent update to the Chinese Civil Code, which approved the legacy of Bitcoin and Ethereum in the event of the death of a citizen, has also given a glimmer of hope that the government's stance may wane further.
FURTHER READING: US Marshals service to outsource seized crypto auctions
FURTHER READING: Winklevoss twins produce Bitcoin films together