Global Bitcoin Mining Industry Regroupes After the 3rd Halving
The Bitcoin mining landscape has changed substantially since the 3rd halving in May. Though on the whole, the volume of bitcoin mining industry has kept an upward trend, profound changes have taken place in the distribution of computing power, the number of miner groups and the composition of mining revenue.
Mining farms in China’s Sichuan are idle, and the United States has become a large buyer in mining machine procurement
As the core area of crypto mining around the world, China’s Sichuan is deserted and quiet this year. It is reported that more than 30% of the machine spaces in Sichuan during the rainy season are idle. In sharp contrast to Sichuan, American mining farms have recently announced large-scale orders for mining machines from China. The largest single order publicly reported this year is a 17900 Ant S19 mining machines order worthing over 200 million Chinese yuan.
According to the public data, China’s share of global computing power has dropped from 70% to around 50%, corresponding to an increase of 12% for the United States’ share. In addition, share of global computing power in Russia and Kazakhstan have increased significantly, now accounting for 6% of the total.
Professionalization of crypto mining has been deepened
The sign of capital entrance to mining is very obvious after 3rd halving. In terms of the mining industry in North America, which has the fastest growth, almost all of them are large-scale mining operations. Starting from energy, capital has built a new mining capital with the help of relevant domestic policy advantages of the United States. This is not what ordinary small and medium-sized miners can achieve, so the specialization of mining has become a trend.
The profit structure of miners has changed
The proportion of transfer fees in the mining income has increased significantly. After halving, bitcoin transfer fees account for up to 20% of mining profit. Before halving, the fees usually account for only 6% of miners’ income.
Although China still accounts for half of the total network hashrate, the growth potential of miners from other countries cannot be underestimated. The competition among Chinese miners has gradually turned into a competition between Chinese miners and foreign miners for mining profits.
Chinese miners are betting hard on the post-halving market, thus underestimating the possible risks. After halving, the stable market eliminated a lot of speculators, while the relatively stable mining atmosphere in other countries, on the contrary, allowed them to avoid risks.