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The recent collapse of crypto markets has hit the crypto miners hard and many of them have been forced to close their stores because the cryptocurrency is no longer able to function. The hardest hit here are the miners in China, who are paying a relatively higher cost than most of the world's countries So, according to Coinshares last report, to keep their mining plants alive, miners they are moving from China to countries where the cost of energy is relatively cheaper
Cheap electricity, fast Internet connections and cooler climates are what the miners want
CoinShares, the crypto asset investment and research platform, has recently published a new 19-page report titled: "The Bitcoin Mining network: trends, cost of marginal creation, consumption and sources of electricity", which is the second edition of CoinShares biennial mining report (the first was released in May 2018). This report presents the current situation and the evolving trends in the crypto-mining industry which also includes a significant and meaningful analysis of geographic distribution, composition, efficiency, electricity consumption and sources of electricity from the Bitcoin mining network. The report also explains and analyzes the critical operating factors for a Bitcoin mining company such as hash rate, marginal creation cost, hardware costs and hardware efficiency.
The report estimated that,
"Currently no more than 60% of the miners remain within the Chinese borders" and these too are "located mainly in a handful of provinces such as Sichuan, Yunnan, Guizhou, Tibet, Xinjiang, Western Inner Mongolia and Heilongjiang. Sichuan is the 80% of Chinese miners ".
He also said that the key consideration driving the decision on the location of these miners was the presence of low-cost electricity, high-speed internet and, in the case of the northern regions, low temperatures that reduce the need for additional cooling costs. But with the collapse of cryptocurrency prices they are slowly becoming unusable to extract cryptocurrencies here unless renewable energy sources are used
After examining the combination of literature and insights publicly available by insiders, the researcher behind this report concluded that it was clear that the miners found it unprofitable to operate their facilities in China and, in large numbers, left China, or choosing not to reinvest in China. On the contrary, they are creating activities in some regions of Scandinavia, Russia, Canada and the United States where it is possible to achieve the combination of cheap abundant electricity, more friendly regulation, fast Internet connections and, to a lesser extent, cooler climates .
Source: Coinshare report
The report also sought to cover the changing dynamics of the crypto-mining industry and the increasing use of renewable energy in mineral cryptocurrencies. He said
"Among our findings there is an estimate that since May the total marginal cost of market creation, between 5 and KWh and 18 month amortization plans has increased from about $ 6,500 to about $ 6,800. , at current prices, the average miner is either: at a loss and unable to recover investments, extract at costs of electricity closer to 3 / KWh, depreciate the mining gears for 24-30 months, or pay less for mining tools compared to our estimates. "
While the report clearly shows how the dynamics that are impacting the crypto mining industry change and how renewable energy is replacing the fossil strength to achieve vitality for the mining business, the crypto-miners move out of China it would certainly hinder the prospect of China as a mining cryptic country. At the Macro level it is a good sigh that the encrypted mining industry is distributed geographically so that no country, region or company can have centralized control over them.
Will China be able to hold back its miners and save its crypt mining industry? Let us know your opinions on the same
Summary
Item name
Crypto miners are leaving China for further valid positions: Coinshares Report
Description
The recent collapse of crypto markets has hit the crypto miners hard and many of them have been forced to close their stores because the cryptocurrency is no longer able to function. The hardest hit here are the miners in China, who are paying a relatively higher cost than most of the world's countries So, according to Coinshares last report, to keep their mining plants alive, miners they are moving from China to countries where the cost of energy is relatively cheaper
Author
Nilesh Maurya
Publisher name
Coingape
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The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication has no responsibility for personal financial loss.
