The "de-Chineseization" of computing power is intensifying.Bitcoin mining and bookkeeping rights are being transferred to North America?

Summary of this issue: At present, the global Bitcoin mining computing power is undergoing a revolution, and North American mining companies headed by Musk are vying for the global mining and accounting rights of Bitcoin.

Recently, a new round of regulatory storms has hit, and the cryptocurrency industry has ushered in its darkest moment.

According to CoinMarketCap data, from May 12 to May 25, the total market value of the cryptocurrency industry fell as a whole, with the market value shrinking by more than one trillion US dollars, a drop as high as 40%.

On the news side, starting from May 18, the three associations first issued an announcement to remind them to prevent the risk of speculation in virtual currency transactions; then, the Inner Mongolia Development and Reform Commission issued the "Announcement on the Establishment of a Reporting Platform for Virtual Currency "Mining" Enterprises"; The Financial Stability and Development Committee of the State Council held the 51st meeting and stated that it will crack down on Bitcoin mining and trading...

For a while, the cryptocurrency industry was in turmoil, currency prices plummeted, and market panic spread. At the same time, it seems that the closure of domestic mines and the forced relocation of miners to the sea will become a "foregone conclusion".

The effective computing power of Chia's entire network is 34.93EiB and the mining output is 1,946,696: Jinse Finance reported that according to chiaexplorer data, on October 10, 2021, the current effective computing power of Chia's entire network is 35.02EiB, and the current total amount of XCH is 22,955,360. 1,955,360 pieces were issued. At present, 0.0002 XCH can be produced per TiB computing power per day, and it takes about 11 years and 56 days to dig out 1 XCH with 1 TiB computing power. According to the quotation, the current quotation of XCH is 168.77 US dollars, an intraday increase of 0.76%. [2021/10/10 20:18:56]

Mining is a "slang word" in the Bitcoin industry. It specifically refers to the use of the computing power of the chip to continuously perform "hash collisions" in the blocks generated by the Bitcoin system to win the right to bookkeeping and obtain system rewards. bitcoin.

In the global Bitcoin mining network, Chinese miners have always dominated. According to a data released last year by the Center for Emerging Finance (CCAF) at Cambridge University, the mining computing power of Chinese miners accounts for 65.08% of the global total mining computing power. Followed by the United States and Russia. After inquiry, this data is also consistent with the data previously released by the encrypted asset management company CoinShares, that is, as of the end of 2019, the computing power owned by Chinese mining pools has accounted for 65% of the computing power of the entire Bitcoin network.

The current real-time computing power of the entire network is 135.87EH/s: Jinse Finance reported that the data shows that the top ten real-time mining pools in the world are F2Pool (3-day lucky value: 80.36%), Poolin (97.30%), Binance Pool ( 108.99%), BTC.com (82.61%), Huobi.pool (107.72%), Antpool (112.13%), ViaBTC (94.02%), 58COIN&1THash (75.37%), Lubian.com, SlushPool (88.36%). The current real-time computing power of the entire network is 135.87EH/s. [2020/12/14 15:06:37]

(Source: https://cbeci.org/mining_map)

CCAF data also shows that Chinese miners are mainly located in the four provinces of Xinjiang, Sichuan, Inner Mongolia and Yunnan. The reason is that Xinjiang and Inner Mongolia are rich in thermal power resources, while Sichuan, Yunnan and other southwest regions are rich in hydropower resources. However, the proportion of mining computing power in the four provinces will change with the seasons. For example, starting from April every year, the southwestern region enters the wet season, and the proportion of thermal power mining is significantly lower than that of hydropower.

The current real-time computing power of the entire network is 111.38EH/s: Jinse Finance reported that the data shows that the top ten real-time mining pools in the world are F2Pool (3-day lucky value: 94.55%), Poolin (105.31%), BTC.com (69.24%), Antpool (110.16%), ViaBTC (102.91%), OKEXPool (115.73%), 1THash&58COIN (120.90%), SlushPool (109.34%), Huobi.pool (86.17%), BytePool (123.87%). The current real-time computing power of the entire network is 111.38EH/s. [2020/3/15]

For a long time, these two regions have been holy lands for mining in China. Until 2020, at the United Nations General Assembly, my country promised to strive to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.

In the face of this environmental protection goal, controlling energy consumption and reducing thermal power has become the focus of work. As early as March this year, the Inner Mongolia Development and Reform Commission issued an announcement stating that it will comprehensively clean up and shut down virtual currency mining projects, and that they will all withdraw before the end of April 2021, and that new virtual currency mining projects are strictly prohibited.

Analysis | BTC is accompanied by an accelerated rise in computing power, and the ratio of large holders’ holdings continues to rise: According to TokenInsight data, the TI index, which reflects the overall performance of the blockchain industry, was 739.59 points at 8 Beijing time on September 13, an increase of 13.03 points from the same period yesterday. was 1.79%. In addition, among the 25 sub-industries closely watched by TokenInsight, the artificial intelligence industry has the highest increase within 24 hours, with an increase of 2.51%; the governance agreement industry has the highest decrease within 24 hours, with a decrease of 7.58%.

According to monitoring, the BTC 24h transaction volume was $15.3 billion, the number of active-zce addresses decreased by 0.44% from the previous day, and the number of transfers increased by 2.68% from the previous day. BCtrend analyst Jeffrey believes that with the accelerated rise of BTC's computing power, the ratio of large holders' positions will also continue to rise, and it may continue to fluctuate upward in the short term.

According to the quantitative analysis of Bituniverse's smart AI, today's market can open EOS/BTC currency grid trading, ranging from 0.0002245-0.0004639 BTC, and earn excess returns on both currencies at the same time.

Note: The above content-zce is for reference only and does not constitute investment advice. [2019/9/13]

At that time, domestic miners and mine owners felt the pressure. the

Analysis | Bitmain's computing power accounts for only 4% of Bitcoin's total mining capacity: According to ccn reports, Bitmain said it will start publishing regular reports on the size of its internal mining operations. Statistics as of July 22 show that it has hardware mining at SHA256 (1,692 PH/s), Ethash (339.7 GH/s) and Scrypt (44.2 GH/s). Bitmain did not disclose what coins the company is mining or how that hashrate is distributed. However, even if the company’s entire SHA256 ASIC is targeting Bitcoin, it only accounts for 4% of the network’s hashrate, which currently stands at 41.83 EH/s, according to BitInfoCharts. [2018/7/26]

Some miners chose to wait and see, looking forward to the introduction of more detailed policy documents; some low-cost miners entrusted miners to resell their mining machines, and some capable and resourceful miners and mine owners chose to move their mining machines to Southwest China Or some low-cost regions abroad.

Considering the uncertainty of follow-up domestic regulatory policies and the replacement of wet seasons and dry seasons in Southwest China, some mining companies are in place in one step, choosing to directly relocate their mines to the sea, especially to Central Asia and North America where electricity costs are relatively low. Region-based.

Just when the Chinese government was trying its best to suppress Bitcoin mining and mining companies were forced to go overseas, Musk on the other side of the ocean started to do things.

Yesterday morning, Musk posted on social media: "Talking to some North American bitcoin miners, they promised to release current and planned renewable energy consumption, and called on miners around the world to do so. This may have future."

(Image source: Twitter screenshot)

Shortly after Musk posted the post, MicroStrategy CEO Michael Saylor reposted the post and revealed that he hosted a meeting last Sunday, in which both Musk and North America’s leading Bitcoin mining institutions attended. These institutions agreed to form the Bitcoin Mining Committee to increase the transparency of energy consumption and accelerate sustainable activities on a global scale. These mining companies include Argo Blockchain, Galaxy Digital, etc.

As soon as the news was fermented, the price of Bitcoin rose, once approaching the $40,000 mark, up more than $6,000 from the intraday low, and a 24-hour increase of nearly 20%.

In view of the current strong supervision of domestic bitcoin mining, and the establishment of a bitcoin mining committee under the leadership of Musk in foreign countries, there have been many discussions from the outside world.

Some people say that a battle for the dominance of global Bitcoin computing power is about to begin; others say that this wave of computing power migration will come faster than expected, after all, the spearhead is directed at Chinese miners...

Chen Weixing, founder of Fancheng Capital and Kuaidi Taxi, pointed out: "Bitcoin mining is just a way to encourage users to participate in bookkeeping when Satoshi Nakamoto designed this system, rather than mining. If Bitcoin is successful, this so-called The "mining" is the financial bookkeeping right in the digital world, and it will evolve into a power similar to the enhanced version of swift. This power is not only responsible for liquidating the reserve currency, but also liquidating most of the core human assets..."

A researcher at the Okey Cloud Chain Research Institute said: "Currently, the global Bitcoin mining computing power is undergoing a change, and North American mining companies headed by Musk are vying for the right to mine Bitcoin globally. In the context of increasingly strict regulations, China may no longer be the base camp of Bitcoin mining, and its early advantages in chips, mining machines, mining pools, and mines accumulated over the past ten years will also be weakened or even weakened. is to replace."

It is worth mentioning that, in addition to the transfer of mining and bookkeeping rights, the outside world is more concerned about the impact on Bitcoin during the redistribution of the computing power of the entire network, especially the price.

Under heavy pressure, the redistribution of the global computing power pattern is an indisputable fact. During this period, Bitcoin mining computing power will inevitably fluctuate.

According to data from OKLink, the average computing power of the BTC network has declined in the past week. As of press time, the average computing power of the entire network has reached 145.85EH/S, compared with the high point of 180.17EH/S on May 12. , down about 20%.

(Image source: https://www.oklink.com/ )

Compared with the recent market performance, many people believe that this round of currency price drop may be caused by the decline in Bitcoin's computing power. But this argument does not seem to hold water.

What is the relationship between computing power and currency prices? the

As we all know, the increase in the computing power of Bitcoin's entire network means that more and more people are participating in mining, or that miners have more and more mining machines. Based on this, we can also see the main factors that affect the computing power of the entire Bitcoin network, namely the price of mining machines, mining machine technology, and the enthusiasm of miners to participate in mining.

It can be seen that the currency price cannot directly affect the computing power. But it is worth noting that as the price of the currency rises, the enthusiasm of the miners to participate in mining will become higher, and the enthusiasm of the miners will contribute to the increase in computing power. However, there is a certain time lag in the middle.

So does the size of the computing power determine the rise and fall of the currency price?

Here, we can recall the computing power war between BCH and BSV: At the beginning, the two sides competed for computing power, but the prices of the two forked coins did not experience an endless skyrocketing. From this case, it can be seen that computing power cannot determine the currency price. Moreover, according to the Bitcoin difficulty adjustment setting, within a fixed period of time, the total amount of Bitcoins mined is constant, and the increase in computing power will not have any impact on its output, and the same is true for the currency price.

In short: Computing power will not affect currency prices, but currency prices will affect computing power.

However, some people were worried that the computing power of a certain country would suddenly shut down under extreme circumstances, and the computing power would drop sharply. However, the Bitcoin difficulty adjustment mechanism could not respond quickly, and the speed of block generation would slow down in this case. But at present, Bitcoin is a global public facility, and its nodes are spread all over the world. As a point-to-point distributed system, its biggest feature is "anti-single point of failure".

Therefore, there is no need to worry about this kind of worry. You must know that when the computing power drops sharply, it means that the competition among miners is reduced and the mining income is higher. At this time, more and more miners will enter the industry, and even some mining machines with backward "energy consumption ratio" will be put on the shelves again. Therefore, even if this extreme situation occurs, it will not have a major impact on the stability of the Bitcoin system.

Write at the end:

Today, with the development of technology, human beings' awareness of environmental protection is also constantly strengthening. As far as Bitcoin mining is concerned, no matter whether it is domestic or foreign miners, the migration between regions cannot solve the fundamental problem. The essence is to find the ultimate solution. The solution is to find clean energy for mining.

Editor｜Okey Cloud Chain Researcher

Produced｜Ooke Cloud Chain Group

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