The end of wet season may lead miners to migrate with cheap electric power.

Yang
3 min readOct 27, 2020

Time is running out for bitcoin miners in southwest China.

In the near future, the wet season in southwest China has ended and entered the normal period. After another month, the dry season will come. Some hydropower mines are preparing to move.

As a result, the hash rate of bitcoin mining pool has declined significantly. According to BTC.com data, as of 18:00 on October 26, the top three pools all fell by nearly 20%, among which f2Poolpool24 fell by 19.31%, Poolin24 fell by 19.50%, and BTC.com fell by 19.17%. In addition, among the top 15 mining pools, MiningCity had the biggest drop, with a 24-hour drop of 61.14%, followed by Spiderpool with a 24-hour drop of 50.32%.

Hashrate ranking

Based on past experience and actual conditions, F2Pool CMO Li Qingfei told Jinse Finance: “The destination of this round of mining machine migration is still mainly in Xinjiang and Inner Mongolia. However, the epidemic in Kashgar, Xinjiang province, will affect the movement of mining machines to some extent, after all, there are many mines in Kashgar.” Shenyu, the co-founder of F2Pool, expressed the impact of the epidemic in Kashgar more directly: “The epidemic in Kashgar is just in time for the period between wet season and dry season; Many machines are still on their way. “ As earlier this year, the coVID-19 outbreak shut down some mines in Xinjiang, cutting off transportation, supplies and the movement of people.

But Kazakhstan has also been a destination chosen for this year’s migration with cheap electricity. (Between September 2019 and April 2020, Kazakhstan has pooled 6.17 percent of Bitcoin’s computing power, ranking fourth in the world.) ViaBTC Pool, for example, today announced a global strategic partnership with overseas mine Enegix to arrange its projects in Kazakhstan. Enegix, which has the largest bitcoin mining data center at 180 megawatts, but charges as low as 3.7 cents per kilowatt-hour.

The decrease of hash rate means the adjustment of mining difficulty. BTC.com predicts that the next bitcoin mining difficulty will drop by 2.22% to about 19.55t, and the current online difficulty is 20.00t, a record high.

Chen lei, founder of Bitelanjing, said at the activity that Bitcoin mining had hit new highs of difficulty, and it was the last hurrah before the wet season was over, because the whole hash rate is too big, the current static values of mining profits is very low. However, the mining industry is characterized by uncertainty, and If we look at the dynamics, hash rate will change, and the price of bitcoin will change too.

Stay tuned about the price and hash rate after this migration.

Article from JinSe Financial

Translated by Yang(Milian)

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Yang

To translate some latest policy and issues on blockchain and fintech happened in China