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China banned bitcoin mining in May 2021, and it appeared in the data. In July, there were probably no miners in China. Not even in August. Then, in September, almost all the miners who had left returned. At the very least, this is what the data shows:

Probably not so I will say: That did not happen. Moving mining operations is not exactly easy. Most mining activities are not just a handful of hobbies that play; Bitcoin has long been accomplishing that. Many miners are appropriately identified as commercial activities, paying three times the lease for the property and depending on the purchase of electricity.

The reason the data looks like this is because of the data collection method employed by CCAF. CCAF has partnered with bitcoin mining pools to collect geolocational mining data based on IP addresses (pools allow many different miners to participate in the mines, and the prize is divided between them according to their processing contribution to smooth the earnings of each miner). This is where the issue and the CCAF strongly warn, saying:

It is no secret to the industry that [miners] in some areas use virtual private networks (VPNs) or proxy services to encrypt their IP addresses in order to hide their location. Such behavior may distort the sample and result in excessive speculation (or contempt) of hashrate in other states or countries.

So the real story of what I think happened here is actually boring.

Chinese miners feared that the government's collapse would be too bad, so they either lied or misrepresented the details of their territory and went underground.

After some time, Chinese miners realized, “Hey, this does not seem so scary,” so they felt free to share their real data.

That's all. As I suggested: it's actually boring.

That is not true at all though. Users of bitcoin mining mines go at least part of their operations, and the growth of non-Chinese mines, especially mines in the U.S. well written. To highlight that, hashrate - the integration capacity of the Bitcoin network - has grown by 40% since China's blockade. CCAF, recognizing the ambiguity of the data, has published a blog post with an amazing article about their review that leaves us with the following:

Most notable, however, is the apparent return of China. Following a government ban in June 2021, the nationwide hashtag has dropped to zero during the months of July and August. But the reported hashrate suddenly rose to 30.47 EH / s in September 2021, quickly reaching China in second place in the world in terms of potential mining capacity (22.29% of total market capitalization). This strongly suggests that an important underground mining operation has been established in the country, which strongly confirms what the industry has long been thinking.

The word used here means "reported." So yes, it turns out that China can actually block bitcoin mining too. Here are some of China FUD's (fears, uncertainties, doubts) in our future. Otherwise, maybe everyone is harassing us and using VPNs to change their location to China to make my job harder.

Hashprice and mining company

During the fall of the bitcoin price, there are some concerns about bitcoin miners and their profits. There is a matrix developed by Luxor Technologies called hashprice which represents the expected number of mines. Hashprice is defined as one dollar per day, terahash the power of integration provided by mining equipment. Here's how the past month went by with hashprice.

Hashprice decreased due to 1) USD price of bitcoin falling, 2) more miners coming online and 3) increased network complexity (the network fixes how hard it is to mine almost every two weeks, based on the effective value of mining power) ). Not exactly rosy, but it makes sense. And downsizing serves as a compulsory service for miners to bind or close. Many industry experts warn that this is a time when “only the strong will survive.”

In theory, miners shut down their equipment whenever bitcoin prices fall sharply, and it becomes useless to keep it running. In this case, although the hashprice has decreased, we have not yet seen this type of decline, and we have details of a public mining company to prove it. Public miners all responded publicly with something related, “Dig bitcoin, we want to dig up more bitcoin, we will hold more bitcoin in the mine and we will use other sources of funding to support performance and growth. "

That would be nice, but as these miners feel more pressure, there are potential obligations for financiers to which they may respond. In addition, if the market gets worse, these companies may need to do something, such as start selling their bitcoin. These are not companies with Apple or Google balance sheets; are very similar to the initiatives that occur in trading in public markets.

All told, there is no reason to worry about the mining industry as a whole. Bitcoin mines will be fine, but the character characters may change from the major markets available to the non-existent ones. Bitcoin will be better for it, but there may be a pain to come at the company level.

Source: yahoo

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