{"id":333306,"date":"2021-09-01T16:07:00","date_gmt":"2021-09-01T13:07:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/china-mining-shock-may-not-be-over-yet-experts-suggest\/"},"modified":"2021-09-01T16:07:00","modified_gmt":"2021-09-01T13:07:00","slug":"china-mining-shock-may-not-be-over-yet-experts-suggest","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/china-mining-shock-may-not-be-over-yet-experts-suggest\/","title":{"rendered":"# China mining shock may not be over yet, experts suggest"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2ef6708f951\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2ef6708f951\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/china-mining-shock-may-not-be-over-yet-experts-suggest\/#Whats_happening_exactly\" >What\u2019s happening exactly?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/china-mining-shock-may-not-be-over-yet-experts-suggest\/#Effects_of_Chinas_ban_will_linger\" >Effects of China&#8217;s ban will linger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/china-mining-shock-may-not-be-over-yet-experts-suggest\/#North_American_mining_companies_step_up\" >North American mining companies step up<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># China mining shock may not be over yet, experts suggest <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvMGVhNDg2ZjItODVhOC00NjA2LWE2NzEtMGEyYjQwMGRmZjUxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>Earlier this year, the Chinese government took the momentous step to ban any crypto mining operations based within its borders, causing a massive exodus of hashing power \u2014 168 exa hashes per second (EH\/s) to nearly 86 EH\/s as of June 23, representing a drop of nearly 40% \u2014 from China to surrounding countries.\u00a0<\/p>\n<p>As a quick refresher, the hash rate refers to the total computational power needed to acquire a single Bitcoin (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/editorial.space\/articles\/9195\">BTC<\/a>). In other words, one can say that while central banks issue fiat currencies, miners are provided with new Bitcoin for solving pieces of complex mathematical code referred to as blocks.<\/p>\n<p>Prior to the ban, China laid claim to 65% of the world&#8217;s total Bitcoin hashing power. Since the aforementioned move, however, a massive number of mining pool operators have packed up their suitcases and left for greener pastures. In one example, Canadian mining firm Bitfarms noted that its revenue had <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bitfarms.com\/app\/uploads\/2021\/08\/BITFARMS-Q2-2021-PR-FINAL.pdf\">increased<\/a> by nearly 30% quarter-over-quarter in Q2 2021, with the company mining 26% more BTC than it had done so in comparison to the previous quarter.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whats_happening_exactly\"><\/span>What\u2019s happening exactly?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After a couple of months of turmoil, BTC\u2019s hash rate levels now seem to have stabilized once again, with numbers seemingly returning to where they once were a few months ago. In this regard, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/quicktake\/6124b578cbc0767d521f2042-Hashrate-is-recovering-further\">data<\/a> made available by crypto analytics firm CryptoQuant shows that the metric seems to have once again <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/quicktake\/6124b578cbc0767d521f2042-Hashrate-is-recovering-further\">topped<\/a> the 150 Exahashes mark at 152 EH\/s, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>ling the levels it had reached on June 28 (52 EH\/s).<\/p>\n<p>It is also worth mentioning that on May 13, Bitcoin&#8217;s average hash rate scaled up to an all-time high of 197.6 EH\/s, only for the figure to slump by more than 65% as mining rigs across China were faced with the \u201cgreat migration.\u201d That said, with the metric now <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaching early June levels, it is estimated that new all-time high values could be registered in the next couple of months.<\/p>\n<p>Providing his thoughts on the matter, Kevin Zhang, vice president of business development at crypto mining firm Foundry, told Cointelegraph that despite the perceived recovery, things are still far from returning \u201cback to normal,\u201d adding that the 152 EH\/s reading was based on a short 24-hour hash rate estimate window, where luck was high across the entire network and blocks were solved faster than expected, adding:<\/p>\n<blockquote><p>\u201cRight now, the 24 hour moving average for hash rate is once again hovering around ~130EH\/s, which is in line with its three- and seven-day moving averages. BTCs hash rate is certainly recovering and returning back to normal. However, a majority \u2014 if not all \u2014 of the large-scale miners in China that were displaced from the crackdowns have either shipped their mining fleets abroad or are warehousing them until they can find open hosting capacity.\u201d<\/p><\/blockquote>\n<p>He further highlighted that, as things stand, the entire world is still constrained on readily available infrastructure that can support all of the displaced mining units to help maintain Bitcoin\u2019s hash difficulty.<\/p>\n<p>\u201cIt certainly is exciting to see hash rate come online and a lot of it is coming from new orders finally being delivered. By the end of the year, we very well could be setting new all-time-highs for network difficulty and hash rate\u201d, Zhang closed out by saying.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Effects_of_Chinas_ban_will_linger\"><\/span>Effects of China&#8217;s ban will linger<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Philip Salter, chief technical officer for Bitcoin mining firm Genesis Digital Assets, told Cointelegraph that many Chinese miners have continued to hold out, hoping for an improvement of the situation inside China or possibly wait for an attractive opportunity to relocate overseas.\u00a0<\/p>\n<p>However, he added that most sizable mining sites have been bought up over the course of 2021, and there is simply no short-term capacity for deploying 5-8 gigawatts of mining hardware, basically implying that the situation hasn\u2019t really reached any sort of tangible resolution just yet. Salter added:<\/p>\n<blockquote><p>\u201cSo, the situation isn&#8217;t over yet and I think we&#8217;ll be seeing the effects of China&#8217;s mining exodus for at least another year. Probably most mining hardware will resurface sooner or later and the hash rate will return. But, we will need to wait and see if it will happen slowly over time, or if panic fueled hardware sales will dump the market prices.\u201d<\/p><\/blockquote>\n<p>Similarly, founder and CEO of mining firm BitRiver Igor Rugnets told Cointelegraph that while a rebound in BTCs hash rate figures was bound to occur \u2014 as previously ordered machines continue to be delivered to their international buyers \u2014 he still believes that most machines that went offline in China due to the crackdown are still yet to find a home abroad.<\/p>\n<p>On a technical note, Rugnets pointed out that in the few weeks following the crackdown Bitcoin\u2019s total hash rate lost over 60 exahashes of computing power. And given that most of those mining machines were not the latest-generation machines, he believes that a total of 750,000 machines would have most likely gone offline as a result of the crackdown.<\/p>\n<p>Lastly, in Rugnets&#8217; view, Bitcoin\u2019s hash rate will continue to rise as previously ordered machines continue to be shipped by manufacturers. Furthermore, he pointed out that every unit of these new mining machines packs in about eight-times more hash rate compared with older generation machines that dominated the Chinese market previously. \u201cBitcoin\u2019s hash rate may even set a new all-time-high before year-end,\u201d he said.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"North_American_mining_companies_step_up\"><\/span>North American mining companies step up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As per data released by the Cambridge Electricity Index, United States-based mining pools have started <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/markets.businessinsider.com\/news\/currencies\/bitcoin-mining-china-hashrate-migration-ccaf-cambridge-center-alternative-finance-2021-7?utm_source=markets&amp;utm_medium=ingest\">sweeping up<\/a> large portions of BTC\u2019s hash rate even before June, a time when China\u2019s local ban hadn\u2019t even come into full effect. In this regard, Riot, a U.S.-based mining firm, reported $31.5 million in mining-related revenues for the three-month period \u2014 up over 1,500% from its Q2 2020 revenue of $1.9 million.\u00a0<\/p>\n<p>The firm also reported a 38% increase in the total number of Bitcoin it was able to mine compared with the previous quarter, generating 675 BTC compared with 491 BTC in Q1. In fact, Riot recently initiated a $650-million 400 megawatt expansion project with Whinstone US, with a total of four additional power production facilities currently under construction.<\/p>\n<p>Other North American mining firms that have recorded staggering year-to-date gains include Marathon (268%), Bitfarms (210%), Riot (126%) and Hut8 (180%). Not only that, data suggests that the aforementioned companies were able to generate an average of 58% more Bitcoin during the month of July than in June.<\/p>\n<p>Commenting on his company\u2019s recent performance, Marathon Digital Holdings CEO Fred Thiel <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/markets.businessinsider.com\/news\/currencies\/crypto-bitcoin-mining-china-ban-earnings-riot-marathon-bitfarms-earnings-2021-8\">revealed<\/a> that during the second quarter of the year, the firm\u2019s revenue rose by a sizable 220% (to nearly $30 million) in comparison with the previous quarter. Additionally, the company\u2019s hash rate also increased by a whopping 196% over the aforementioned time window.<\/p>\n<p>Thus, it will be interesting to see how Bitcoin\u2019s hash rate recovery proceeds from here on out, especially with an increasing number of firms across the globe stepping up their production capacities.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/china-mining-shock-may-not-be-over-yet-experts-suggest\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# China mining shock may not be over yet, experts suggest &#8221; Earlier this year, the Chinese government took the momentous step to ban any crypto mining operations based within its borders, causing a massive exodus of hashing power \u2014 168 exa hashes per second (EH\/s) to nearly 86 EH\/s as of June 23, representing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":333307,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvMGVhNDg2ZjItODVhOC00NjA2LWE2NzEtMGEyYjQwMGRmZjUxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74937,74860,75462,75042,78423,4965],"class_list":["post-333306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-bitcoin-price","tag-cryptocurrency-exchange","tag-hash-rate","tag-mining","tag-mining-pools","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/333306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=333306"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/333306\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/333307"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=333306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=333306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=333306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}