Report: Bitcoin computing power is "decentralizing," with China's share falling to 50%

Digital asset consultants BitOoda and Fidelity have released an illuminating report that attempts to analyze mining prospects in terms of total energy consumption, energy costs, deployed mining hardware, and geographic distribution of hash rates.

The report has an interesting number: China's computing power is currently about 50%. For years, the percentage of bitcoin computing power cited by the Chinese public has hovered between 60 and 65 percent. That decline now means that bitcoin mining is becoming increasingly fragmented, contributing to its basic value proposition. The U.S. accounts for about 14% of bitcoin computing power, according to the report.

The report gives a brief account of where the data came from: the team used a variety of public resources, as well as secret conversations with miners, machine makers and traders, to assess the location of mines where bitcoin was mined and the price miners paid for electricity. The team found about 4.1GW of power in 153 mines, 67 of which had about 3GW of capacity, and some miners provided price data on the condition of anonymity.

BitOoda believes its survey conversations show the United States, Canada and Iceland account for most of that capacity, but only a fraction in China and "the rest of the world." In discussions with the miners, BitOoda asked them about their own capacity, how many other miners they knew in the market and what they thought the total output of the area would be. BitOoda thinks this is a useful way to estimate the overall geographic distribution of mining capacity in an area.

Analysis of the information obtained by this method shows that the cost curve estimates the median cash cost of digging out a BTC to be about $5,000, with a confidence ceiling of about $6,000. This estimate is for cash operating expenses and does not include depreciation or other costs for mining hardware.

Based on more data and surveys, BitOoda believes the bitcoin network hash rate could reach 260EH/s in 12 months and 360 EH/s in 24 months. However, according to the BitOoda model, this depends in part on the price appreciation of bitcoin or the expected rate of appreciation of 25-35% per year.

Interestingly, BitOoda predicts that if the price of Bitcoin rises steadily by more than 40% a year to around $19,000 in two years, the latest S19 series miners on the market will still be viable even at 5c/kWh power costs, but the total funding gap for the industry will be about $4.1 billion. Capital expenditure requirements and cash flow generated within the network.

Note: Bitcoin mining is a very secretive industry. Many mines or miners are not easy to find, especially in China, most of the mines may still be unknown. Given the wide distribution of miners around the world, the authors stress that the data use itself is limited and may not represent the full picture of the mining industry. This article is for discussion and study only. The data are for reference only.

At bitcoin-Mining-hashrate-and-power-analysis-bitooda-research-ebc25f5650bf, one of the most-power-spoken power-words in The world is power-generating

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia