Is Bitcoin mining center moving from China to North America? Chinese "miners" have something to say

Surging News Intern Ye Yinghe Reporter Zheng Ge

Source: Surging News

Is it possible that China will no longer be the "base camp" for Bitcoin mining?

Reuters reported on February 11 that Barry Silbert, founder of Grayscale Investments, the world's largest cryptocurrency asset management company, told investors that Bitcoin production is moving from China Moving to North America, while China currently dominates Bitcoin mining.

Hilbert said that in the last 3-6 months, it has seen that Bitcoin mining activity is being transferred from China to the United States and Canada. But he did not explain why this shift occurred.

Reuters reports that mainstream investors such as pension funds or asset management companies are hesitant to invest in Bitcoin due to concerns about Bitcoin's volatility, security breaches and lack of transparency. But since its birth more than a decade ago, Bitcoin has been favored by enthusiasts and retail investors. Hedge funds and trading companies are also increasingly interested in Bitcoin. In the era of the lowest interest rates, many people are attracted to Bitcoin's high returns.

According to a report from digital asset management company CoinShares, bitcoin miners in China currently control about two-thirds of the encryption network processing capacity. This advantage allows Chinese miners to produce a larger number of Bitcoins and stimulates Chinese demand for mining tools.

As for Hilbert's point of view, several people in the bitcoin mining industry have expressed their disapproval to Surging News.

An industry insider said, "[The United States and Canada] have more manpower and electricity, which is far worse than Xinjiang."

A miner told the surging news reporter that the cost of bitcoin mining mainly comes from mining machine input, logistics freight, custody fees (including electricity costs), machine depreciation and machine maintenance. Among them, the custody fee (including electricity) accounted for the highest proportion, up to 45%.

Asked whether Bitcoin mining would be transferred overseas in the future, many in the industry were not optimistic. A person involved in the manufacture of bitcoin mining machines said: "The cost is still very expensive abroad, and there are many problems."

"A few years ago, I talked with friends about overseas mines, and some of my friends opened mines in Iran, Russia, and Malaysia, but the political situation abroad is unstable and there will be great variables." The miner said, "In addition, I have a Malaysian The customer asked me how many times I bought the machine that I eliminated, and I sold the eliminated S7 to him when I changed the S9 the year before, and I've always been curious, how can I still dig the S7? How can it be profitable? I have free electricity in Malaysia. Later I have been urged to go to Malaysia to build a mine. He can get through to the relationship. All are free electricity. I think the risk is high and I have not agreed. Recently I learned that the so-called free electricity is stealing electricity. Malaysia Electricity mining has formed a certain scale. Even after the police are found, the police are too lazy to control it. Even if it comes, the maximum penalty will be leveled, and no sentence will be imposed. The cost of crime is too low. "