Topic: After a few months of China crackdown on mining. Check it out! - page 3. (Read 552 times)
October 15, 2021, 05:33:54 AM
Looks like Chinese government shoot themselves in the knew with anti mining regulations. It was logical, that miners will move to other countries and pay for electricity and rent there, while bitcoin will continue to grow. Looks like Russia will be the winner of this year crypto regulations.
October 15, 2021, 04:53:47 AM
The underlying data is from the originating IP address of the miners connecting to the pools, not the pools themselves.
Correct but I haven't seen mining pools that reveal their miners' IP addresses. That would be a violation of their privacy and more importantly security. I also haven't seen any mining pool releasing general stats about their miners' locations, etc. I would love to see them if they exist and anyone can provide a link (from mining pool website itself not third parties). 
October 15, 2021, 04:51:50 AM
The underlying data is from the originating IP address of the miners connecting to the pools, not the pools themselves.
If someone connects to a pool with a Chinese IP address, they will show as being a miner from china. If someone from china uses a VPN located in the US to connect to their pool, they will show as being located in the US.
This. CBECI has three big assumptions in their methodologyIf someone connects to a pool with a Chinese IP address, they will show as being a miner from china. If someone from china uses a VPN located in the US to connect to their pool, they will show as being located in the US.
- Assumption 1: IP addresses of mining facility operators are an accurate indicator of hashrate location.
- Assumption 2: data provided by participating mining pools constitutes a representative sample of Bitcoin’s total geographic hashrate distribution.
- Assumption 3: the available sample of Chinese province data is representative of the total hashrate distribution within China.
- Underlying IP address and other sensitive data from mining pools that CBECI can not access;
- Representative of sample size for global hashrate
- Representative of sample size for China
One thing is clear, China will see great amount of reduced income in their country.
They - government - can only get tax and power bills from miners there. They can increase power base price or increase tax rate but their priority now is energy supply for the country, for more essential industries. Most of income will be for Bitcoin miners, not government or the nation. October 15, 2021, 03:42:48 AM
Finally something good about China. Lolz. I mean in perspective of rest of the world or non-China who always thought China could manipulate the market severely and destroy the decentralisation any time soon. The whole thing has turned upside down for the China if above values are accurate.
One thing is clear, China will see great amount of reduced income in their country. Just imagine almost 30+ % of mining power and at the current rate the bitcoin income could have been enormous!! It’s literally shut off for China in blink of an eye. Plus I’m not sure what are they gonna do about the hardware, rented mining places, and what not. This is serious damage to them.
One thing is clear, China will see great amount of reduced income in their country. Just imagine almost 30+ % of mining power and at the current rate the bitcoin income could have been enormous!! It’s literally shut off for China in blink of an eye. Plus I’m not sure what are they gonna do about the hardware, rented mining places, and what not. This is serious damage to them.
October 15, 2021, 03:20:21 AM
So from what I have heard.... Russia has invested a lot of money into Crypto currency mining and I believe a lot of the Chinese mining operations have relocated to USA and Canada?
I also believe that the zero mining operations in China might be wrong and that someone might still be mining on a very small scale, from their basement or mining Alt coins from their GPU's. (It will never just go to zero.... those stats are being manipulated)
I also believe that the zero mining operations in China might be wrong and that someone might still be mining on a very small scale, from their basement or mining Alt coins from their GPU's. (It will never just go to zero.... those stats are being manipulated)
October 15, 2021, 02:39:48 AM
I am not sure, but possibly if we know in the past few years, there are some pools in China that sum up to more than 51% of network hashrate, so a few smaller pools can contribute to bring it up to 75%. Obviously I know pools and ownership are different if we talk about origin of hashrate.
Exactly.If someone connects to a pool with a Chinese IP address, they will show as being a miner from china. If someone from china uses a VPN located in the US to connect to their pool, they will show as being located in the US.
October 15, 2021, 02:30:17 AM
I am not sure, but possibly if we know in the past few years, there are some pools in China that sum up to more than 51% of network hashrate, so a few smaller pools can contribute to bring it up to 75%. Obviously I know pools and ownership are different if we talk about origin of hashrate.
Exactly.Another reason to doubt the charts (specifically first one) is that the percentage drops to zero. If we justify the initial huge hashrate by saying it is counting pool hashrate then the end of it is wrong since even today the sum of hashrate coming from Chinese pools is not zero. In fact the 2 pools F2Pool and AntPool have a total of 33.56% between them according to btc.com.
October 15, 2021, 02:26:24 AM
China hashrate dropping from 41% to 0% in one month(June-July 2021) seems suspicious to me.
I wonder what will happen to the Chinese companies that produce mining hardware,like Bitmain?
Will they keep producing mining hardware and export it outside China?
The concerns about the mining hashrate being concentrated in one country were false.Bitcoin was OK,when the vast majority of the mining was located in China.China never had any control over Bitcoin.
Now,Bitcoin is still doing fine,with the hashrate being re-distributed among several countries.
I wonder what will happen to the Chinese companies that produce mining hardware,like Bitmain?
Will they keep producing mining hardware and export it outside China?
The concerns about the mining hashrate being concentrated in one country were false.Bitcoin was OK,when the vast majority of the mining was located in China.China never had any control over Bitcoin.
Now,Bitcoin is still doing fine,with the hashrate being re-distributed among several countries.
October 15, 2021, 01:43:16 AM
While the numbers do look impressive, have hard times believing that mainland China has indeed 0 hash rate.
It is unlikely that China has no miners inside its mainland. In order to hide mining activity from the CCP, any remaining miners will have to hide their Chinese IP addresses. With the above being said, any major mining operations are going to shut down their operations and either attempt to sell their equipment overseas, or move their equipment overseas once they have the appropriate infrastructure in place. Mom and Pop mining operations have less risk of being targeted by the government, and they may still be mining via a VPN, and properly wont be otherwise investigated.
To those that are asking why the CCP would implement this kind of ban, the first reason is social control, the use of bitcoin gives people freedom, and the CCP does not want its people to have freedom, the second reason is capital control, if Chinese citizens cannot withdraw their money from mainland China, they will ultimately need to "invest" it in CCP approved banks.
October 14, 2021, 08:29:33 AM
For the big industrial farms yes, they probably all left China or are in the process of leaving.
But they are owned by the same people, the hardware is now someplace else the control of the hardware is the same.
For the small 1 or 2 miner people (home / hobby) they are still there. Although the internet in china is heavily regulated by the great firewall of china as it's called there are enough holes in it to get enough data through to mine. Either through VPNs or other proxies that hide the traffic. Will hurt profitability due to stale shares but it's still there.
Slightly OT, but GPU - altcoin mining, has probably not changed much. There has been almost 0 uptick on used graphic card availability so it's not like people are turning off their rigs.
-Dave
Of course, it is unrealistic that in such a large country like China with such a dense population in such a short time, even after the ban, Bitcoin mining fell to zero. Small miners, of course, still work there, but in the shadows. Considering the fact that negative news on cryptocurrency constantly came from the government of China, one of the channels of such news has already been blocked. Therefore, in general, this is not bad for cryptocurrency.But they are owned by the same people, the hardware is now someplace else the control of the hardware is the same.
For the small 1 or 2 miner people (home / hobby) they are still there. Although the internet in china is heavily regulated by the great firewall of china as it's called there are enough holes in it to get enough data through to mine. Either through VPNs or other proxies that hide the traffic. Will hurt profitability due to stale shares but it's still there.
Slightly OT, but GPU - altcoin mining, has probably not changed much. There has been almost 0 uptick on used graphic card availability so it's not like people are turning off their rigs.
-Dave
In addition, the cryptocurrency market quite calmly took the information of the People's Bank of China about the illegality of all transactions in cryptocurrency. We see that bitcoin has now risen to almost 58,000 dollars, and altcoins are also growing in price. If the Chinese government still has a negative attitude towards cryptocurrency, it would be better if there are fewer levers of negative influence on it.
October 14, 2021, 07:19:40 AM
For the big industrial farms yes, they probably all left China or are in the process of leaving.
But they are owned by the same people, the hardware is now someplace else the control of the hardware is the same.
For the small 1 or 2 miner people (home / hobby) they are still there. Although the internet in china is heavily regulated by the great firewall of china as it's called, there are enough holes in it to get enough data through to mine. Either through VPNs or other proxies that hide the traffic. Will hurt profitability due to stale shares but it's still there.
Slightly OT, but GPU - altcoin mining, has probably not changed much. There has been almost 0 uptick on used graphic card availability so it's not like people are turning off their rigs and selling the cards.
-Dave
But they are owned by the same people, the hardware is now someplace else the control of the hardware is the same.
For the small 1 or 2 miner people (home / hobby) they are still there. Although the internet in china is heavily regulated by the great firewall of china as it's called, there are enough holes in it to get enough data through to mine. Either through VPNs or other proxies that hide the traffic. Will hurt profitability due to stale shares but it's still there.
Slightly OT, but GPU - altcoin mining, has probably not changed much. There has been almost 0 uptick on used graphic card availability so it's not like people are turning off their rigs and selling the cards.
-Dave
October 14, 2021, 06:42:52 AM
You can not call the sum of all this "more decentralization" since one country (regardless of personal feelings about that country) has no miners anymore. If anything this event decreased decentralization since countries that already had a share of the total hashrate now have more share while China has 0.
I meant there are more hashrate in other countries especially the USA and Canada. Hashrate grows up too fast in those countries. I meant it is geographical decentralization that does not equal to the decentralization of hashrate in ownership.The percent of hashrate from the USA does not increase too much, because there are other countries have increase in hashrate. If the trend in other countries keep going and bigger than from the USA, the percent from USA. will fall down. The USA will likely not a second dominating nation like China.
From Apr to Aug, assumtion - those stats are accurate.
- USA: 26.5 to 42.7 EHS or 16.9% to 35.4%
- Canada: 4.7 to 11.5 EHS or 3% to 9.6%
Quote
P.S. I doubt the accuracy of the first chart that shows China had about 75% of the hashrate in Sep 19.
I am not sure, but possibly if we know in the past few years, there are some pools in China that sum up to more than 51% of network hashrate, so a few smaller pools can contribute to bring it up to 75%. Obviously I know pools and ownership are different if we talk about origin of hashrate. 
October 14, 2021, 05:26:39 AM
I would have thought that some of them end up mining in secrecy, with solar power or something... But as their hashrate is zero now, has the markets been flooded with cheap chinese mining equipment lately? I haven't been following that scene.
October 14, 2021, 05:15:25 AM
China has a share fall to 0.
More decentralization,
You can not call the sum of all this "more decentralization" since one country (regardless of personal feelings about that country) has no miners anymore. If anything this event decreased decentralization since countries that already had a share of the total hashrate now have more share while China has 0.More decentralization,
P.S. I doubt the accuracy of the first chart that shows China had about 75% of the hashrate in Sep 19.
October 14, 2021, 02:12:20 AM
I can believe that some individual person is still mining, but the big farms? Not a chance. It would be easy for the Chinese government to detect large light consumption, plus surely they had already detected where the farms were before. Why go to another part of China to continue mining if they can go to a country where it is legal?
Apart from the fact that normally nobody wants to have problems with the government for exercising a forbidden activity, but even less with the authoritarian Chinese government.
As said, China has been in a crisis of energy shortage hence they have to implement serious regulations on Bitcoin mining to make sure energy supply is enough for other industries that involve more in the national wealth.Apart from the fact that normally nobody wants to have problems with the government for exercising a forbidden activity, but even less with the authoritarian Chinese government.
When it is fixed, they will see no reason to keep the ban on Bitcoin mining that is not harmful for the nation.
October 14, 2021, 02:07:37 AM
While the numbers do look impressive, have hard times believing that mainland China has indeed 0 hash rate.
It is impossible to believe that mining in China has fallen to zero
I do believe it. I understand that it has fallen to almost 0%, and that by approximation on the graph it is zero. I can believe that some individual person is still mining, but the big farms? Not a chance. It would be easy for the Chinese government to detect large light consumption, plus surely they had already detected where the farms were before. Why go to another part of China to continue mining if they can go to a country where it is legal?
Apart from the fact that normally nobody wants to have problems with the government for exercising a forbidden activity, but even less with the authoritarian Chinese government.
October 14, 2021, 12:08:38 AM
Updates with raw EHS by countries
- The USA.: Increase from 15.7 EHS (Jan) to 42.7 EHS (Aug)
- Kazakhstan.: Increase from 9.2 EHS (Jan) to 21.9 EHS (Aug)
- Russia Federation: Increase from 10.3 EHS (Jan) to 13.6 EHS (Aug)
- Canada: Increase from 1.3 EHS (Jan) to 11.5 EHS (Aug) - If the data is accurate and if Canada maintains such growth rate, it will join top 3 soon.
October 13, 2021, 11:42:52 PM
One interesting thing that we all know is that most of the top mining pools are still coming from China, even if they are not physically showing location in mainland China.
Everyone knows that F2Pool, Antpool, ViaBTC and few other pools have majority of hashrate, and they are probably using some VPN or proxy to redirected IP addresses.
We don't have any big new or unknown mining pools so I don't think anything really changed despite numbers this Cambrigde website is showing.
Everyone knows that F2Pool, Antpool, ViaBTC and few other pools have majority of hashrate, and they are probably using some VPN or proxy to redirected IP addresses.
We don't have any big new or unknown mining pools so I don't think anything really changed despite numbers this Cambrigde website is showing.
It is impossible to believe that mining in China has fallen to zero, even when the government is tough on something, the compliance rate will not be zero.
So while the numbers may not be that accurate, the trend is clear: everybody who could has moved out of China.
I agree that we can not verify those data, not only for China but also for other countries. It is unbelievable that all mining farms located in China mainland turn off their ASICs.From the peak (13 May 2021 - 197.6 Ehash/s) to the bottom (28 June 2021 - 68 Ehash/s), it is a 65.6% drop of hashrate. After that hashrate recovers a lot and we can not know where the newly added hashrate come from, with contribution of China or without China.
The only thing we know is Bitcoin mining industry is growing and expanded to other countries, more geographical locations, more decentralized.
https://bitinfocharts.com/comparison/bitcoin-hashrate.html#3y
We can not verify things are happening in China now but with the FUD history of China mainland, I believe when their government solve issues of energy supply, they will allow Bitcoin mining again.
Even if that happens, I don't think most of the miners would go back [it's not worth the risk].
It is same for exchanges, they gradually to migrate out of China mainland, years ago. The latest attempt to make more regulations and barriers for crypto transactions in China mainland only give crypto exchanges more reasons to move their main officies out of China.So miners can turn on their ASICs if the ban on Bitcoin mining is removed but I agree that more miners and mining companies will try to decentralize their own risks by moving to other countries.
One interesting thing that we all know is that most of the top mining pools are still coming from China, even if they are not physically showing location in mainland China.
Everyone knows that F2Pool, Antpool, ViaBTC and few other pools have majority of hashrate, and they are probably using some VPN or proxy to redirected IP addresses.
We don't have any big new or unknown mining pools so I don't think anything really changed despite numbers this Cambrigde website is showing.
Everyone knows that F2Pool, Antpool, ViaBTC and few other pools have majority of hashrate, and they are probably using some VPN or proxy to redirected IP addresses.
We don't have any big new or unknown mining pools so I don't think anything really changed despite numbers this Cambrigde website is showing.
When I read the news concerning the China ban I was a little bit concerned about what will become of bitcoin but I was surprised about the positive turn bitcoin took even after the news and all which shows that Bitcoin is here to thrive be there any ban from any Country.
Jump to: