{"id":8478,"date":"2021-06-19T21:54:12","date_gmt":"2021-06-19T21:54:12","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/figuring-out-how-much-bitcoin-hashrate-resides-in-mainland-china-still-a-mystery\/"},"modified":"2021-06-19T21:54:12","modified_gmt":"2021-06-19T21:54:12","slug":"figuring-out-how-much-bitcoin-hashrate-resides-in-mainland-china-still-a-mystery","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/figuring-out-how-much-bitcoin-hashrate-resides-in-mainland-china-still-a-mystery\/","title":{"rendered":"Figuring Out How Much Bitcoin Hashrate Resides in Mainland China Still a Mystery"},"content":{"rendered":"

Over the last few weeks, there have been many reports about crackdowns in China tied to bitcoin mining operations in various provinces. 30-day statistics show the hashrate has been fluctuating wildly, and across the last week it has slid downward roughly 26%.<\/strong><\/p>\n

Reports Show Bitcoin Mining Crackdowns in Five Chinese Provinces<\/h2>\n

Despite the slide, the top three mining pools in the world, which represent roughly 41% of the hashrate today, are considered Chinese mining pools. This doesn\u2019t necessarily mean the mining pools actually host physical bitcoin mining facilities in mainland China, however.<\/p>\n

How much hashrate resides in China is the million-dollar question these days. Especially after Beijing\u2019s crackdown on the mining industry and the following bans in a number of provinces.<\/p>\n

Five provinces in China have seen bitcoin mining bans.<\/p>\n

The mandates first appeared in Inner Mongolia, as reports<\/a> surfaced during the first week of March 2021. Then on June 9, 2021, a report disclosed that specific bitcoin miners in Xinjiang had been instructed to shut down<\/a>.<\/p>\n

Another mandate appeared<\/a> for crypto miners in Qinghai province. After Qinghai province, authorities in Yunnan cracked down<\/a> on bitcoin mining operations in that region as well.<\/p>\n

Bitcoin (BTC<\/a>) hashrate on June 19, 2021, according to 30-day stats.<\/p>\n

Then, while everyone was waiting to hear about Sichuan, following the May 31 report<\/a> that notified the public a meeting was taking place, the news finally came. Officials in Sichuan sent notice<\/a> to bitcoin miners in the province to shut down by June 25.<\/p>\n

<\/p>\n

Existing Hashrate Reference Maps and Faults Found in Assumptions<\/h2>\n

Hashrate charts show during the last seven days, the Bitcoin network hashrate has slipped and currently hovers a hair above the 100 exahash per second (EH\/s) zone. The issue is no one is quite sure exactly how much hashrate resides in China, and how many operations are forced to migrate.<\/p>\n

The Cambridge Center for Alternative Finance index map otherwise referred to as CBECI. The CBECI map has not been updated since April 2020.<\/p>\n

Many mainstream reports pointed to the Cambridge Center for Alternative Finance index map, otherwise known as CBECI. The unreliable CBECI map<\/a> hasn\u2019t been updated since April 2020 and the map indicates 65% of the hashrate is in China.<\/p>\n

The Cambridge Center for Alternative Finance index map otherwise referred to as CBECI. The CBECI map has not been updated since April 2020.<\/p>\n

The CBECI data also has significant limitations toward estimation, as it only collects data from three large pools and the \u201caggregate geo-location data based on the IP addresses of hashers connecting to mining pools.\u201d Cambridge further notes<\/a> that \u201chashers in certain locations use virtual private networks (VPNs) or proxy services to hide their IP address and thus location.\u201d<\/p>\n

Moreover, at any given time, a large number of stealth miners have been known to dedicate hashrate to the BTC<\/a> network. These stealth miners, otherwise dubbed as \u201cunknown\u201d in hash distribution pie charts, make up around 6%<\/a> of the network hashrate this weekend. At times, during the last few years, mystery miners have gathered more than 20% of the hashrate.<\/p>\n

The web portal digiconomist.net<\/a> is similar, as it shows an unreliable chart with shares of the Bitcoin network\u2019s hashrate, but it too has not been updated since April 2020. In China, digiconomist.net\u2019s survey shows operations in Beijing, Nei Mongol, Guangdong, Qinghai, Yunnan, Sichuan, Shanxi, Guizhou, Gansu, Ningxia, Shaanxi, Zhejiang, and Hebei.<\/p>\n

The web portal digiconomist.net\u2019s hashrate share by country chart has not been updated since April 2020.<\/p>\n

There\u2019s also a published study<\/a> from Coinshares, which highlighted that 74% of the world\u2019s bitcoin mining operations were driven by renewable energy in 2019. The in-depth report<\/a> does contain a survey of a number of mining locations around the world and includes a map.<\/p>\n

A Coinshares map published in a bitcoin mining report back in 2019.<\/p>\n

The Coinshares\u2019 map is fairly basic but conveys the general idea that there\u2019s a large portion of miners in China and specifically Sichuan. Between the CBECI map, digiconomist.net chart, and Coinshares\u2019 report we still don\u2019t have an up-to-date percentage of how many miners are located in China.<\/p>\n

However, there\u2019s a recent report<\/a> from July 15, 2020, published by Bitooda with support from asset manager Fidelity Investments that cuts China\u2019s hashrate down to 50% from previous estimates.<\/p>\n

The most recent geographical study on hashrate location stems from a Bitooda report with support from Fidelity Investments. The Bitooda report, published in July 2020, shows China\u2019s hashrate percentage is only 50%. This figure shows the geographic distribution of surveyed mining capacity vs the estimated 9.6GW total capacity. <\/em><\/p>\n

Additionally, faults in the assumptions<\/a> underpinning the digiconomist.net data have been found. In 2018, another Coinshares\u2019 study<\/a> had shown criticism toward the Digiconomist\u2019s BECI<\/a> and noted there was a large discrepancy regarding the total energy consumption data.<\/p>\n

This Bitooda-created pie chart shows the geographic distribution of surveyed mining capacity vs. Estimated 9.6GW total capacity. The Bitooda report published on July 15, 2020<\/a>.<\/p>\n

Hashrate Distribution and Ostensible Headquarters<\/h2>\n

Finally, the public does have access to data from hashrate distribution by pool names. The top five dominant mining pools today are Antpool, Viabtc, F2pool, Btc.com, and Poolin. In terms of hashrate percentage, below Poolin is Binance Pool, an unknown entity, and Foundry USA, respectively.<\/p>\n

Three-day hashrate distribution for the Bitcoin (BTC<\/a>) blockchain on June 19, 2021, according to Btc.com stats.<\/p>\n

Measuring data this way is faulty because not all pools are hard operations, as many pools are a mix of hashpower from physical facilities and miners from all around the world pooling computing power with the pool. There is no known location for Binance Pool and Poolin says its operation is headquartered in Hong Kong.<\/p>\n

Annual hashrate distribution for the Bitcoin (BTC<\/a>) blockchain on June 19, 2021, according to Btc.com stats. The mining pool Antpool (top, blue) has seen a 60% increase in hashpower across the last 12 months.<\/p>\n

Poolin\u2019s website details that it does have offices in Beijing, Chengdu, and Changsha, China. Bitmain\u2019s Antpool says its headquarters is in China, and Viabtc\u2019s records and F2pool (formally known as Discus Fish) also show China-based headquarters.<\/p>\n

Btc.com\u2019s records indicate the mining company\u2019s headquarters resides in Amsterdam. Roughly 41% of the hashrate could be considered as being from Chinese pools, but we cannot be sure of how much of this hashpower actually stems from mainland China.<\/p>\n

As stated previously, Chinese bitcoin mining pools are not necessarily located in China. Fact is, figuring out exactly how much bitcoin hashrate resides in mainland China is still a puzzle. Look out for the follow-up to this comprehensive report that covers the complete landscape of Bitcoin hashrate distribution over the last 12 years.<\/p>\n

What do you think about the geographical locations of miners? How much hashrate do you think resides in China? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nMining, Antpool, beijing, Bitcoin mining, Bitooda, BTC Mining, BTC.com, cambridge, CBECI map, China, China Hashrate, China Provinces, digiconomist.net, F2Pool, fidelity, Geography, Guangdong, Guizhou, Hashpower, Hashrate, MAPS, mining bitcoin, Mining BTC, Nei Mongol, Qinghai, Shanxi, sichuan, Unknown Miners, ViaBTC, VPNs, Yunnan<\/p>\n","protected":false},"excerpt":{"rendered":"

Over the last few weeks, there have been many reports about crackdowns in China tied to bitcoin mining operations in various provinces. 30-day statistics show the hashrate has been fluctuating wildly, and across the last week it has slid downward roughly 26%. Reports Show Bitcoin Mining Crackdowns in Five Chinese Provinces Despite the slide, the…<\/p>\n","protected":false},"author":0,"featured_media":8479,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-8478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8478"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=8478"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8478\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/8479"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=8478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=8478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=8478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}