Bitcoin Network Hashrate Grows to New Record High Despite Market Sluggish
The bitcoin network’s hashrate has climbed close to 32.168 PH/sec as of late May in spite of market sluggish, according to blockchain.info. It seems that this digital gold rush is still attractive and meanwhile drives the mining difficulty to a new level.
Over the past month, bitcoin market cap shrink from $157.3 billion to $127.4 billion, falling by 19% in a month, with 444,000 daily active addresses and 197,000 average daily transactions; other cryptocurrencies also continue downward momentum, according to a monthly report on blockchain industry by a Chinese regulatory authority.
With the big three cryptocurrency exchanges (Binance, Huobi and OKEx), two largest mining machine manufactures (Bitmain and Canaan), and mining pools (BTC.com, Antpool, ViaBTC…) which take up almost 90% of the global hashpower based in China, the country could have been a greater power in the crypto world if it had shown amicable attitude towards cryptocurrencies and ICOs.
As bitcoin mining difficulty increases along with regulatory crackdown, a large number of Chinese miners have moved their equipment to countries with cheap electricity like Russia, Iceland, Norway, Canada and southeast Asia, according to previous reports by 8btc.
The cost of mining a bitcoin varies significantly around the world, ranging from as little as $531 in Venezuela to a stunning $26,170 in South Korea, according to a report conducted by Elite Fixtures this January. Among the listed 115 countries, those where aforementioned countries Chinese miners flooded are all on the top 20 cheapest to mine bitcoin.
While mining hardware maintenance in those countries would cost miner 3 times higher than that back in China. And it might take weeks to have it repaired and delivered back from China.
Mining in those low-cost countries where mining machine industry is also comparably underdeveloped means that miners have to pay higher equipment maintenance costs. Bitmain and Canaan, dominant mining machine manufacturers in the country, could have provided the most convenient maintenance service.
However, many crypto mining heavens are taking unfriendly actions towards it. Recently Vietnam’s Ministry of Finance (MoF) has proposed a temporary blanket ban on crypto mining hardware imports, following Venezuela halted imports of crypto mining equipment. In such context, the bitcoin network hashrate still grows…