Arab Press

بالشعب و للشعب
Thursday, Apr 25, 2024

Cambridge data shows Bitcoin mining on the move

Cambridge data shows Bitcoin mining on the move

New data shows Bitcoin mining in China was already in sharp decline before the latest crackdown by the government.

The research by the Cambridge Centre for Alternative Finance (CCAF) found China's share of mining fell from 75.5% in September 2019 to 46% in April 2021.

It also revealed Kazakhstan was now the third most significant Bitcoin mining nation.

Miners earn money by creating new Bitcoins, but the computing used consumes large amounts of energy.

They audit Bitcoin transactions in exchange for an opportunity to acquire the digital currency.

Global mining requires enormous computing power, which in turn uses huge amounts of electricity, and consequently contributes significantly to global emissions.

The CCAF's Cambridge Bitcoin Electricity Consumption Index shows that at time of writing Bitcoin consumed almost as much electricity annually as Colombia.

China moves


In June the Chinese authorities took strong action against Bitcoin.

The authorities told banks and payments platforms to stop supporting digital currency transactions causing prices to tumble.

The data from the CCAF covers a period before the crackdown, but it shows China's share of global mining power was already in significant decline prior to the action by the Chinese authorities.

The Cambridge researchers observed that the crackdown, once enacted, effectively led to all of China's mining power "disappearing overnight, suggesting that miners and their equipment are on the move".

Kazakhstan is a heavy user of coal-fired generation


Experts say the miners are highly mobile.

"Miners pack shipping containers with mining rigs", said David Gerard, author of Attack Of The 50 Foot Blockchain, "so that in effect they are mobile computer data centres, and they are now trying to ship those out of China".

It's not clear where they will go, but even before the crackdown the geography of mining was shifting.

Kazakhstan, a country rich in fossil fuels, saw an almost six-fold increase in mining - increasing its share from 1.4% in September 2019 to 8.2% in April 2021.

According to the US Department of Commerce, 87% of Kazakhstan's electricity "is generated from fossil fuels" with coal accounting for more than 70% of generation.

The country is now the third largest miner of Bitcoins, behind the US, which saw its share of global mining power also rise significantly - to 16.8%.

Raining money


The data also revealed the close ties between sources of cheap electricity and Bitcoin mining.

Researchers found a seasonal movement of mining between Chinese provinces in response, it was suggested, to the availability of hydro-electric power.

Mining moved from the coal-burning northern province of Xinjiang in the dry season, to the hydro-abundant southern province of Sichuan in the rainy season.

The researchers noted that "this seasonal migration has materially affected the energy profile of Bitcoin mining in China", adding that it illustrated "the complexity of assessing the environmental effects of mining".

Sichuan banned Bitcoin mining in June.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×