Hello HODLers,
As you have heard, the big story lately has been China closing down on its domestic miners for a few different reasons. We do not know for sure the exact reasons but below will be the main takes on the topic by people smarter than myself:
- China is trying to get lower Bitcoin's exposure before launching its own digital currency. It did pursue a lot of trials over the past few months and it seems it has managed to achieve good results
- They want to redeploy the current hydroelectric power to industry / city use cases. It couldn't do it so effectively in the past as these regions were not connected properly to the Chinese greed and the technology was not developed enough.
- CHina sees a lot of party leaders being corrupt in the region where Bitcoin is mined. They are either protecting miners or giving them some advantages over the electricty consumption. Beijing think that they are probably paid in Bitcoin to avoid their control.
- Bitcoin could be used by citizens to get capital out of China as they can buy mining equipment, mine bitcoin and sell them against other currencies/assets worldwide
As you can see, this was the "old split" and it seems than China is not even above 50% of the network today.
Total BTC HashRate
Is it linked to China's e-CNY Tests?
As politicians would say: "America is back!"
Florida and Texas are fighting to attract miners promising a friendly regulatory environment and cheap electricity.
We have also heard a lot of other countries seeing an increase in their % of hashrate (Europe, Mongolia, Kazakhstan, Canada...).
I see this Bitcoin Mining Migration as a great news for the West and people loving decentralization & freedom. This has alwas been a threat to Bitcoin and our decentralized system.
Now we might come to a Bitcoin mining power truly geographically decentralized and I feel so much better about this option.
I will conclude by saying it is great to see CryptoMarkets bouncing back !