China’s Bitcoin mining industry had the biggest impact this year, the report said

Tokeninsight researchers and analysts have released the “Report on the Cryptocurrency Mining Industry of Q2 2020” which shows that the sector has grown exponentially over the past six months. The results indicate that cryptocurrency mining has expanded a lot, but China’s bitcoin mines “had a big impact” in the first half.

Tokeninsight released its “Q2 2020 Cryptocurrency Mining Industry Report” and the study shows that a lot of things happened in the bitcoin mining industry during the first half of 2020.

The new research paper discusses a number of topics that have impacted the bitcoin mining industry this year and the countries that are welcoming these operations. For example, Tokeninsight points out that the Uzbek government set up a “national mining pool” in January.

After that announcement, the Canadian hydropower agency of Quebec allowed the bitcoin miners to obtain 300 MW of electricity.

In February, the Ukrainian government said that bitcoin mining “does not require government supervision and intervention.” The following month, Missoula County, Montana created new regulations for bitcoin miners.

In May, the interim Ukrainian energy minister told the public that bitcoin miners may be able to tap into nuclear power. In April, Sichuan local government officials approved the “Hydropower Consumption Demonstration Enterprises”.

News.Bitcoin.com recently reported on the second batch of approved consumer businesses in Sichuan. In June, Kyrgyzstan’s parliament said it wanted to “tax and monitor digital asset miners”.

Tokeninsight said China was the hardest hit in 2020 as the country saw a significant impact for a variety of reasons.

Tokeninsight researchers said Covid-19 caused delays in shipping mining rigs, halving bitcoin halved revenue for Chinese miners, internal disputes from mining machine makers like Canaan and Bitmain, and the report also mentions the changes of mining policy in Sichuan.

Additionally, Tokeninsight has noticed a trend of new players entering the bitcoin mining rig manufacturing industry.

“In terms of the mining machinery manufacturing industry, the new players are eager to enter the field, and the old masters are also doing their best to upgrade the technology to produce market-leading products,” notes the document. “In the first half of 2020, the new generation mining machines including Bitmain’s S19 and S19 Pro, Canaan’s WhatsMiner M30 and A1146 Pro and A1166 Pro series were launched one after the other.”

The report also adds:

From data published by several manufacturers, the new generation of mining machines has been significantly optimized and improved in terms of performance and energy consumption.

The study states that the main competition between mining rig manufacturers is semiconductor research and development (R&D).

A number of mining rig manufacturers use 10-7nm chips, and Tokeninsight researchers point out that the chips will improve in the coming years.

“At the current level of chip R&D, Samsung and TSMC have implemented 3nm chips and both plan to mass produce 3nm in 2022,” the paper explains. “While 3nm is said to be a node approaching its physical limit, TSMC has already planned for 2nm and is conducting mass-produced R&D in 2024.”

“Data mining hardware is facing an accelerated iteration period and the AI ​​chip field will become a battlefield,” the Tokeninsight researchers add.

In addition to the problems with Covid-19, supply chain delays and government rules, the Chinese bitcoin mining industry is coming under the pressure of the 2020 monsoon season in Asia. On Tuesday, August 18, excessive flooding in Sichuan over the past five days caused hashrate losses of 20% for a series of Chinese bitcoin mining operations.

What do you think of Tokeninsight’s Q2 mining report? Let us know what you think in the comments below.

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