- Large industries and the dry season in China are driving low profitable Chinese retail miners out.
- Bitcoin miners are expanding globally across North America, Russia, Iran among other countries.
- By next year, the BTC mining industry will no longer be dominated by China.
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China’s mining cartel is breaking up, and Bitcoin mining is decentralizing thanks to the dry season, obsolete equipment, and rising global interest.
Public Listed Firms and Governments Compete for Hashrate
The Chinese mining industry is slowly losing its dominance as the competition scales up around the world.
Bitcoin mining in China has been dependent on cheap energy availability during the rainy season from May to September. This year the wet season was extended until October, forcing miners to migrate to west China from Sichuan—the region with the maximum number of miners.
“We are seeing a small migration of Chinese miners to other countries, including Russia and North America. Other Chinese miners have opted to switch off their S9’s and wait for the next hydro season to turn on again.”
In China, miners and mining farms are run by separate entities. Hence, it provides a niche for retail miners to buy hardware and plug into the farms. Due to the rising difficulty in mining and lack of cheap power sources, large companies are now driving retail miners out.
What’s more, the S9s that were profitable just a couple of months back are now slowly becoming obsolete.
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