Non-Chinese miners rub their hands
The top 5 North American miners, Marathon Digital, Riot Blockchain, Argo Blockchain, Bitfarm and Hut8 all had a particularly positive July.
However, these companies did not increase their hash power with additional hardware. So, how to explain this increase in profitability? Much of this is because the network experienced the biggest drop in mining difficulty in its history in July after China’s mining policy tightened.
After years of threats, the authorities took action in June by cutting off the electricity supply to miners in Sichuan province. Since then, China has continued its crackdown, targeting Yunnan province, as well as Inner Mongolia and the provinces of Xinjiang and Qinghai. In early July, an estimated 90% of Chinese miners were stopped.
As a result, the market shares of non-Chinese Bitcoin mining companies have increased significantly. Thus, the 5 main North American miners mined 1,802 BTC in July, i.e. an additional 667 BTC than in June.
However, this did not benefit everyone. Other American miners such as BIT Mining, The9 City, which had operations in China, were also affected by the restrictions. The latter began to ship machines to Kazakhstan, Russia and the United States.
A very good news ?
Shutting down Chinese miners is obviously a good short-term move for other miners who can enjoy a bigger slice of the network’s rewards pie.
But above all, this migration could prove to be good news in the long term about the environmental impact of Bitcoin. This will allow a lower concentration of mining in China and therefore reduce the use of non-renewable energy sources.
👉 To read on the same subject: About 90% of Chinese Bitcoin (BTC) miners are said to be at a standstill
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About the author: Florent David
Engaged in the crypto ecosystem since 2017. I am particularly interested in decentralized finance (DeFi), Ethereum 2.0 and non-fungible tokens (NFT).
All articles by Florent David.