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China is losing its share of the mining market …

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China is losing its share of the mining market ...

China loses its share of the cryptocurrency mining market to Kazakhstan and Russia
CONTENT

  • Russia may move China out of the mining market

  • China’s hashrate goes down

  • Russia can become a mining center in the CIS and Europe

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This is evidenced by the latest research on the TokenInsight resource. Analysts note that the situation in the mining market plays against China. Very soon the USA may become the leader in the extraction of cryptocurrency.

China is losing its share of the mining market ...

Mining activity rates are falling

 

According to the data provided in the report, hash rates in China are rapidly declining. Since September 2019, this figure has dropped from 75.63% to 65.08%, while in the US, the hash rate, on the contrary, has grown to 7.24%. TokenInsight analysts also refer to the materials of the Cambridge University on Alternative Finance, which studies hash rates in various countries of the world. As you can see on the map, the United States is gradually increasing its presence in the mining market. And the third place in terms of hashrate was taken by Russia.

Token Insight believes that the estimated power consumption of Bitcoin mining may reflect market sentiment to some extent. The biggest impact on bitcoin mining is the price of the cryptocurrency and the size of the reward for the mined block. According to the CCAF monthly average hash rate, China continues to dominate, with the country accounting for 65% of the hash rate overall. As of April 2020, the United States is the country with the second highest hash rate at 7.24%, with Russia ranking third. The share of Kazakhstan, Malaysia and Iran accounted for 6.17%, 4.33% and 3.82%, respectively, of the world hash rate.

China is losing its share of the mining market ...

TokenInsight chief analyst Johnson Xu is confident that China’s dominance of bitcoin mining will continue to decline. Due to price fluctuations and a decline in the value of cryptocurrency last month, “a large proportion of miners in China have closed their farms compared to the rest of the world.”.

Xu explained that halving Bitcoin halving cuts the number of new coins miners create and earn by half. This happens about every four years and … More has made the miners’ job harder.

“There are quite a few older generation machines in China because there is no incentive for miners to switch to new generation machines,” Xu said..

He also noted that miners are leaving China to open farms elsewhere. Xu says the mining environment in China is rather unstructured, which limits the ability to access capital..

Russia breaks out into the leaders

 

According to the report, Russia and the United States may become the new leaders in industrial mining. Now in these countries, the cryptocurrency mining industry is actively developing, and this can give impetus to miners. For example, in Russia there are already two largest data centers that provide computing power for mining pools from other countries. At the moment, there are all the prerequisites for Russia to become a leader in mining. Several large mining farms are already operating in the country. The first large data center that provides industrial facilities for mining cryptocurrency miners is the BitRiver data center, which is located in the city of Bratsk on the territory of an aluminum plant. The data center positions itself as the largest platform for mining cryptocurrencies in the CIS, and the total capacity of the equipment is 30 MW. It mines cryptocurrencies such as bitcoin (95%) and altcoins LTC and zcash (5%).

BitRiver can only compete with the recently opened data center owned by Rosenergoatom, which plans to create several sites for industrial mining at once and lease areas and equipment for mining.

China is losing its share of the mining market ...

Today a record number of miners is registered in Russia – about 140,000 people. According to this indicator, Russia has overtaken China – slightly less than 84,000 miners, Ukraine – 56,000 miners, the USA – about 45,000 miners and Venezuela – about 30,000 miners. This means that Russia is a priority region for mining and the number of miners is likely to increase..

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