One of the most influential Chinese miners claims that Bitcoin mining is already predominantly green
On June 16, the difficulty of Bitcoin mining fell 5% to 19.933 trillion. It was the first time this year that there had been two consecutive downward adjustments, and also the first time the difficulty had fallen below 20 trillion. Furthermore, at press time, the BTC hashrate is currently sitting at 132,808M, according to Blockchain.
Source: Blockchain
CEO of mining pool BTC.TOP claims that Bitcoin mining is already predominantly green
During the difficulty adjustment period from May 30 to June 16, the average hashrate of the entire network was only 142.68 EH/s, the lowest level this year and 5.18% lower than the previous difficulty adjustment period.
In another development, according to BTC.TOP CEO, Jiang Zhuoer, Bitcoin miners’ clean energy usage already exceeds 50%.
Now all the mining facilities in Xinjiang, Inner Mongolia and Qinghai provinces have been shut down, only hydropower mining farms in Sichuan are left. Currently the clean energy usage by #Bitcoin miners ⛏️already exceeds 50%. ? https://t.co/3jeFSXxy0R
— Jiang Zhuoer BTC.TOP (@JiangZhuoer) June 16, 2021
Zhuoer claims that mining facilities located in Xinjiang, Qinghai, and Inner Mongolia have been shut down due to the government’s ongoing crackdown on the industry. And rightly so, the government of Changji city in Xinjiang ordered all crypto-mining farms to shut down. The Qinghai provincial government also instructed all miners in the province to cease operations. Some sources have said that Yunnan Province is also planning to close mining farms, although according to official sources, miners will face closure only if they are using electricity without permission. The clampdown on crypto mining has followed a ban on mining imposed in Inner Mongolia in April.
However, only the Mekong mining farms in Sichuan have so far remained unharmed. The Chinese Bitcoin mining industry is looking for opportunities overseas. According to a report by CNBC, many of these companies are looking towards North American, and specifically Texas, to base their mining facilities.
The report stated:
“Despite a lack of reserves that caused dayslong blackouts last winter, Texas often has some of the world’s lowest energy prices, and its share of renewables is growing over time, with 20% of its power coming from the wind as of 2019. It has a deregulated power grid that lets customers choose between power providers, and crucially, its political leaders are very pro-crypto – dream conditions for a miner looking for a kind welcome and cheap energy sources.”
Castle Island Ventures partner Nic Carter said:
“That given the drop in hashrate, it appears likely that installations are being turned off throughout the country.”
The analyst thinks that probably 50% to 60% of Bitcoin’s entire hashrate will ultimately leave China.
Overall, as Elon Musk said, when there’s confirmation of reasonable (~50%) clean energy usage by miners with a positive future trends, Tesla will resume allowing Bitcoin transactions. And if Zhuoer’s words are true, the situation is pretty bad now. But it is unclear what source of data Tesla will use for verifying Bitcoin’s greenness.
Read more:
- MicroStrategy CEO Michael Saylor Made Some Rare Comments About Ethereum: There’s A Place For Everybody
- Legendary Trader John Bollinger: The Bottom Is Already In And $50,000 Is Bitcoin Price First Real Target