Report: China Still Dominates Bitcoin Mining with 60% of Global Share
Sichuan, a mountainous province in southwestern China, is still home to the most bitcoin miners for its abundant and cheap hydroelectric energy, despite the country’s tough stance on quashing the crypto market.
According to cryptocurrency research firm Coinshare’s latest report, China continues to dominate the bitcoin mining industry with 60 percent of all mining happening there. Sichuan alone produces 50% of global hashrate, marginally higher than the figure (~48%) in November 2018, and the remaining 10% distributes in Yunnan, Xinjiang and Inner Mongolia.
Though the past 6-month period saw Sichuan’s bitcoin mining share rise, it is mostly the result of the upcoming rainy season there during which energy costs can be as low as $0.025/kWh. The report points out that the last few years have seen a steady trend of reduction of Chinese geographical dominance among bitcoin miners. This unforeseen reduction in miners can be attributed to the uncertainty of the Chinese government’s policy towards miners.
Earlier this April, the country’s state planner says it wants to eliminate crypto mining for its over-consumption of energy resources, regarding this, the report claims that 90% of bitcoin mining in Sichuan is powered by renewable energy and the average ratio within the country is 44%. Following that in May, government authorities in Sichuan province started to probe into local bitcoin mining farms that have allegedly been constructed without official approval.
Despite the fall in geographical dominance, the report points out that Chinese dominance in hardware manufacturing remains as strong as ever. The world’s three largest bitcoin mining manufacturers – Bitmain, Canaan and Ebang, together with the latecomers like WhatsMiner and Innosilicon, are stepping up their efforts to roll out next-gen powerful machines, such as Bitmain’s Antminer 17 series, Canaan’s A10, Innosilicon T3, WhatsMiner M20, etc.