A new regional report from China Blocktrain&Bitcon news (8tbc) and statements from the head of operations at Genesis Mining, the largest cloud mining company on the market indicate that Chinese miners are migrating from China to Nordic Regions.
Bitcoin mining is a computerized process with three main functions which includes issuing new Bitcoins, confirming transactions and ensuring the Bitcoin network remains secure. Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions. China has the largest industry of Bitcoin miners worldwide with estimates that the country captures anywhere between 50-65% of the global Hashrate. Put simple, Hashrate is a general measure of the processing power of the Bitcoin network. The Xinjiang region of China accommodates 35% of the Hashrate.
According to a new report by Lyke Aru, financial columnist from 8btc, Chinese bitcoin miners have been concentrated in China, but miners have started to gradually migrate to Nordic countries like Sweden and Norway. Luke Aru’s report says that Chinese operations are attracted to eco-friendly green energy in the Nordic region as well as the benefits from countries like Sweden and Norway in contrast to China.
Lyke Aru explains that bitcoin miners in China used to enjoy the lack of regulations and extremely cheap electrical rates in China but that deployment of regulatory agencies and strict measures towards cryptocurrencies have been implemented by China’s communist Government in recent years and this have affected mining operations in China. The recent electrical issue due to the shortage of coal in China is another problem Chinese miners from Yunnan province are dealing with.
Philip Salter, head of operations at Genesis Mining has verified Lyke Aru’s statements in regard to Chinese miners moving to the Nordics. Philip Salter emphasized that China’s miner migration is one of the biggest developments in the bitcoin industry right now and said that the movement is due to miners seeking out financial safety and political stability.
Philip Salter explained, “There is a very important strategic shift away from mining in China to mining in western countries like Sweden as Bitcoin investors become more public and want more stability and critical safety”.
It was recently reported by news.Bitcoin.com that the Cambridge Bitcoin Electricity Consumption Index (CBECI) map shows China still commands 65% of the Hashrate today but CBECI have explained that the CBECI map is not up-to-date and will be updated in 2021.