Bitcoin’s hashrate drops below 100 exahash, observers describe China’s “great ASIC exodus” – Mining Bitcoin News
Most of the crypto community focused on developments in China and, in particular, on the raids against bitcoin miners in Inner Mongolia, Xinjiang, Qinghai, Yunnan and Sichuan. On Wednesday morning (EST), Bitcoin’s total hashrate continued to decline and is now below the region of 100 exahash per second (EH / s). Over the past 24 hours, people familiar with Chinese miners have described the latest troubles bitcoin miners face.
Hashrate migration is “a long process”
Communications from government officials in five Chinese provinces noted that bitcoin mining operations must cease immediately, and this has caused great concern among some bitcoin operators recently. On Tuesday June 22nd, Bitcoin.com News reported on the hashrate shifts and how mystery hashrate and stealth mining increased after the raids. Bitcoin.com News also explained last week how extremely difficult it is to determine the exact amount of hashrate that is in mainland China.
The community can see that the hashrate is now below 100 EH / s and has lost between 15-25% since the crackdown in Sichuan. Meanwhile, residents of the western hemisphere were in the dark about the actual hash rate in China and where mining operations are relocating. The regional reporters at 8btc together with Kevin Zhang, CEO of Foundry Digital, described some of the events taking place in China.
“Chinese miners are unfamiliar with the overseas environment and moving overseas will be a long process,” 8btc said on a Twitter thread on Tuesday. 8btc’s thread comes from a translated comment by a miner dealing with the raid situation. “Today a mining industry insider published that Chinese miners actually tried to move overseas a few years ago, but it turns out that total domestic costs are still the lowest,” 8btc continued.
“In Canada and the USA in particular, bare electricity usually costs 0.3 cents, but construction + labor + operation and maintenance + taxation and various environmental protection standards have long cycles and high costs,” says the regional report, translated by 8btc details. “Electricity prices in the Far East are cheap, but miners are concerned about the instability of the local situation. Georgia and Kazakhstan have electricity, but the process is sometimes the same as in Vietnam and India. “
The translated report from China goes on to say that temperatures in Malaysia and Thailand are too high. In addition, Chinese miners in Africa and Iran have seen advertisements to set up businesses there, but no one knows “who actually went there”.
“At the same time, Fenghua International Express announced that it has flown a number of Bitcoin miners to Maryland, USA,” the thread added. “It is reported that this is just the ‘vanguard’ in the army of bitcoin miners that China has shut down, which is a very small proportion.”
The 8btc thread ended with the emphasis, “Luckily we now have passionate people like [Arman Batayev] from the Astana Financial Innovation Center and [Guy Deriq] from Uganda [who] can help Chinese miners go abroad. I would love to see more people like this coming out. “
90% of bitcoin mining capacity in China will be offline by the end of the month
In addition to the 8btc thread, the Vice President of Business Development at Foundry Digital, Kevin Zhang described the problems his “mining colleagues in China” see.
“The mood is obviously pretty gloomy and the reality shows that it’s GG for mining in China. Some mining enthusiasts have stayed in Sichuan since the Bitmain conference to drink off their worries. Now … 酒 都不 想喝 了 – ‘not even in the mood to drink anymore’, “Zhang said On Wednesday. “They estimate that about 70% of the Bitcoin Mining capacity in China has gone offline and will be almost 90% offline by the end of this month, ”he added.
Zhang said that in extreme cases, some colleagues in Kangding, Sichuan were ordered by “power plants / stations” to remove all infrastructure including containers, racks and shelves. With just a week or two in advance of notice, Zhang noted that moving the entire infrastructure was tedious and “especially when you consider that most of the operations (especially the larger ones) have received the correct assurances and permits to operate.”
“Before resellers and opportunists are much too hasty to get hold of discounted electrical appliances,” Zhang added. “You should keep in mind that most of the equipment does not meet the regulations for established western countries (not UL Listed or CE Certified, Aluminum Transformers vs. Copper).” The mining manager continued:
Which leads to my next point that the “great ASIC exodus” will be anything but seamless … Hosting capacity outside of China was oversubscribed and scarce even before these regulatory announcements. In addition, the expectations of the hosting terms are HIGHLY MISALIGNED.
9) Chinese miners mobilized quickly … a colleague sent some technicians to Shenzhen to focus on testing, repairing, cleaning and repackaging second hand miners for export. He has cleaned and shipped over 20,000 ASICs in the last 2 weeks pic.twitter.com/92pAynQigl
– Kevin Zhang (@SinoCrypto) June 23, 2021
Zhang cited a number of examples of misalignments such as hosting costs are more expensive internationally, there are long lead times, required deposits, and US-China tariffs. Foundry Digital’s managing director said that not all Chinese miners were “caught with their pants down”. He emphasized that some are already gradually expanding internationally.
“That process only accelerated with the ban on Inner Mongolia earlier this year,” said Zhang. The representative of the foundry concluded:
This is not the end. Whatever doesn’t kill Bitcoin will make it stronger. I chuckled with some colleagues earlier because we’re so early … The MSM nibbled at reporting that 6,600 lbs of ASICs had been shipped. That’s just over 200 ASICs.
What do you think of the ‘Great ASIC Exodus’ in China? Let us know what you think on this matter in the comments below.
Photo credits: Shutterstock, Pixabay, Wiki Commons, Twitter, Kevin Zhang,
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