Bitcoin mining industry in China hardest hit in 2020
During the first half of 2020, China's cryptocurrency mining industry has been impacted by a number of factors.
Thu, 20 Aug 2020, 16:29 pm UTC
TokenInsight Inc., the cryptocurrency industry-focused research and consulting firm based in Beijing, recently published a report covering the latest developments in the crypto mining industry. Researchers and analysts from the firm say that the industry experienced grew in the past six months but added that Chinese Bitcoin mines “suffered a great impact” in the first half of 2020.
In the report titled “2020 Q2 Cryptocurrency Mining Industry Report,” Tokeninsight discussed a number of issues and topics that affected the Bitcoin mining industry worldwide, according to Bitcoin.com. For example, one of the events mentioned in the report is the establishment of a national mining pool by the Uzbekistan government in January of 2020.
The report likewise mentioned Quebec’s Hydropower Agency of Canada's decision to allow Bitcoin miners to purchase 300MW of power from its grid. The Ukraine government’s statement in February that Bitcoin “does not require government supervision and intervention.”
Tokeninsight noted that Montona’s Missoula Country passed new regulations for miners in March while Sichuan’s local government officials approved the “Hydropower Consumption Demonstration Enterprises” in April. Meanwhile, Ukraine's acting Minister of Energy likewise announced in May that crypto miners might be able to obtain power from nuclear energy.
Unfortunately for Chinese Bitcoin miners, Tokeninsight also revealed that the country’s crypto mining industry was the hardest hit for the first six months of 2020 due to various reasons. The report cited the recent Bitcoin halving that cut mining revenue by half, the Covid-19 pandemic that caused delays in the shipment of mining rigs, and the disputes among mining hardware manufacturers such as the rift between Canaan and Bitmain.
Another factor that could be a challenge for Chinese Bitcoin miners is the monsoon season. Heavy rains in the Sichuan caused flooding and power outage resulting in the reduction of hash rates by as much as 15 percent, according to Coindesk.
Meanwhile, new players have entered the mining rig manufacturing niche forcing existing brands to upgrade their wares. “In the first half of 2020, new generation mining machines including Bitmain’s S19 and S19 Pro, WhatsMiner M30 series, and Canaan’s A1146 Pro and A1166 Pro have been launched one after another,” the report added.
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