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Finding out what the bitcoin hashrate is in Mainland China is still a mystery – Mining Bitcoin News #cryptocurrency #bitcoin #crypto #blockchain

Over the past few weeks, there have been several reports about crackdowns involving bitcoin mining operations in various provinces in China. The 30-day data shows that the hash rate has fluctuated wildly, with a drop of nearly 26% over the past week.

Report shows bitcoin mining crackdown in five Chinese provinces

Despite the slide, the top three mining pools in the world, which today represent about 41% of the hash rate, are considered Chinese mining pools. This does not mean that mining pools actually host physical bitcoin mining facilities in mainland China, however.

How much hash rate lives in China is a million dollar question these days. Especially after Beijing’s crackdown on the mining industry and the following sanctions in several provinces.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
Five provinces in China have banned bitcoin mining.

The mandate first appeared in Inner Mongolia since the report emerged during the first week of March 2021. Then on June 9, 2021, a report revealed that specific bitcoin miners in Xinjiang had been directed to shut down.

Another mandate for crypto miners appeared in Qinghai Province. After Qinghai province, authorities in Yunnan cracked down on bitcoin mining operations in that area as well.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
Bitcoin (BTC) hash rate as of June 19, 2021, according to 30-day data.

Then, while everyone was waiting to hear about Sichuan, after reports on May 31 that informed the public that a meeting was taking place, the news finally came. Sichuan authorities sent notices to bitcoin miners in the province to shut down by June 25.

Defects found in existing hashrate reference maps and estimates

The hashrate chart over the past seven days shows that the bitcoin network hashrate has slipped and is currently hovering a hair above the 100 exhash per second (EH/s) area. The point is, no one is quite sure how much hash rate resides in China, and how many operations are forced to migrate.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
The Cambridge Center for Alternative Finance Index Map is otherwise referred to as the CBECI. The CBECI map has not been updated since April 2020.

Several mainstream reports pointed to the Cambridge Center for Alternative Finance Index Map, otherwise known as the CBECI. The unreliable CBECI map has not been updated since April 2020 and the map shows that 65% of the hashrate is in China.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
The Cambridge Center for Alternative Finance Index Map is otherwise referred to as the CBECI. The CBECI map has not been updated since April 2020.

The estimation also has significant limitations in the CBECI data, as it aggregates data from only three large pools and “aggregate geo-location data based on the IP addresses of hashers connecting to the mining pools.” Cambridge further notes that “hashers in some locations use virtual private networks (VPNs) or proxy services to disguise their IP address and thus location.”

Furthermore, at any one time, a large number of stealth miners are known to have dedicated hash rates to the BTC network. These stealth miners, otherwise referred to as “unknowns” in the hash distribution pie chart, accounted for about 6% of the network hashrate as of the end of this week. Sometimes, over the years, mystery miners have collected more than 20% of the hash rate.

The web portal digiconomist.net is similar, as it shows an unreliable chart with hashrate shares of the bitcoin network, but this too has not been updated since April 2020. In China, digiconomist.net’s survey shows operations in Beijing, Nei Mongol, Guangdong. , Qinghai, Yunnan, Sichuan, Shanxi, Guizhou, Gansu, Ningxia, Shaanxi, Zhejiang and Hebei.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
The hashrate share of web portal digiconomist.net as per country chart has not been updated since April 2020.

There is also a published study by CoinShares, which revealed that 74% of the world’s bitcoin mining operations in 2019 were powered by renewable energy. The in-depth report surveys several mining locations around the world and includes a map.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
A CoinShares map published in the Bitcoin Mining Report in 2019.

The CoinShares map is fairly basic but suggests the general idea that there is a large proportion of miners in China, and Sichuan in particular. We still don’t have an up-to-date percentage of how many miners are located in China between the CBECI map, the digiconomist.net chart, and the Coinshares report.

However, there is a recent report dated July 15, 2020, published by Bituda with the support of asset manager Fidelity Investments, which downgrades China’s hash rate by 50% from previous estimates.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
The most recent geographic study on the hash rate space stems from the Bituda Report backed by Fidelity Investments. The Bituda report published in July 2020 shows that China’s hash rate percentage is only 50%. This figure g. showsGeographical distribution of the surveyed mining capacity against the estimated 9.6GW total capacity.

Additionally, flaws have been found in the assumptions that underpin the digiconomist.net data. In 2018, another Coinshares study criticized Digiconomist’s BECI and noted that there was a large discrepancy with respect to the total energy consumption data.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
This Bituda-produced pie chart shows the geographic distribution of the surveyed mining capacity versus the estimated 9.6GW of total capacity. Bituda report published on July 15, 2020.

hashrate distribution and ostensible HQ

Finally, the public has access to data on hashrate distributions by pool names. The top five major mining pools today are Antpool, YBTC, F2Pool, BTC.com and Poolin. In terms of hash rate, the bottom of the pool is Binance Pool, an unknown entity, and Foundry USA, respectively.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
The three-day hash rate distribution for the Bitcoin (BTC) blockchain on June 19, 2021, according to data from Btc.com.

Measuring data this way is flawed because not all pools are difficult operations, as many pools are a mix of hashpower from physical facilities and miners around the world pooling computing power with the pool. There is no known location for Binance Pool and Poolin says its operations are headquartered in Hong Kong.

Figuring out how much bitcoin hashrate resides in mainland China is still a mystery.
The annual hash rate distribution for the Bitcoin (BTC) blockchain as of June 19, 2021, according to Btc.com statistics. Mining pool Antpool (top, blue) has seen a 60% increase in hashpower over the past 12 months.

Poolin’s website details that it has offices in Beijing, Chengdu and Changsha, China. Bitmain’s Antpool says it is headquartered in China, and records from Viabtc and F2pool (formally known as Discus Fish) also show its headquarters in China.

Records from Btc.com indicate that the mining company is headquartered in Amsterdam. Roughly 41% of hashrate can be assumed to come from the Chinese pool, but we cannot be sure how much of this hashpower actually stems from mainland China.

As stated earlier, Chinese bitcoin mining pools are not necessarily located in China. The fact is, finding out how much of a bitcoin hashrate remains in mainland China is still an enigma. See the follow-up to this comprehensive report covering the entire landscape of bitcoin hashrate distribution over the past 12 years.

What do you think about the geographical location of the miners? What do you think is the hash rate in China? Let us know what you think about this topic in the comment section below.

Tags in this story

antpool, beijing, bitcoin mining, bituda, btc mining, btc.com, cambridge, cbeci map, china, china hashrate, china province, digiconomist.net, f2pool, fidelity, geography, guangdong, guizhou, hashpower, hashrate, maps, mining bitcoin, mining btc, nei mongol, qinghai, shanxi, sichuan, unknown miners, vibtc, vpn, yunnan

image credit: Shutterstock, Pixabay, WikiCommons, Bituda, Fidelity, CoinShares, CBECI, BTC.com, Digiconomist.net, Coinwarz,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell any products, services, or companies, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any materials, goods or services mentioned in this article.

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