BTC Mining Getting Easier in 2021?

Maybe you are one of many who are simply watching the China cryptocurrency ban news as an ominous sign to BTC's evaluation. However some good news is occurring with the latest China ban. A lot of the BTC mining in the country, China, that has taken a stranglehold in mining power of BTC has decreased rapidly in the past two weeks since news came out that the Chinese government is enforcing a ban on cryptocurrency.

China's BTC Mining Steadily Falling

Chart above is one year ago however it clearly depicts how large of a share the China market has on mining BTC. As of 2020 China's mining power actually dropped from a high of 76% down to 65%. The China ban as of a few weeks ago has intensified the BTC mining retreat. Latest data shows BTC mining difficultly dropped 16% compared to May 10 prior to the Chinese government news ban.

In a sign of that, China’s overall share of hashrate dropped from 76% in September 2019 to 65% in April last year, according to crypto research firm Arcane Research.

16% drop in BTC mining in less than month Source Article

China Losing BTC mining percentage over the years since 2019 Source Article

Take note that the two of top three cities with most BTC mining in China has now its energy production complex focusing on limiting BTC mining. The cities of Sichuan and Inner Mongolia are having their electricity usage restricted when it comes to BTC mining. It will be interesting how this will play out in the long run but signs now is that many of these miners in China are trying to shift their mining toward North America and Europe.

“I’ve had 300-400MW of mining machines contact me to help them distribute their machines across NA (North America) and some parts of EU (European Union). Some have also begun shipping machines to Kazakhstan.”

Coindesk's Source Article on Chinese BTC mining Shifting

Conclusions

The shift from China leading with majority of BTC mining to less than 3/4 at its peak in 2019 and continue down trend is a good sign towards decentralization of BTC. With more mining spread across the globe it will allow BTC to be distributed in rewards and control of transactions much more widely than in the past. This overall will lead to greater adoption to the cryptocurrency as resources across the globe are being allocated to it.

The slow down in BTC mining has lead to slightly higher chances for remaining miners to successfully mine a block and earn BTC rewards. This will temporarily entice more miners outside of China to mine BTC. As China's miners are trying to reallocate their miners to different countries to avoid the cryptocurrency ban in their own country.

All in all it appears to be a big benefit for the infrastructure of BTC as proof of work is distributed to more countries beyond China. Whether the current BTC price reflects this condition will take time to play out. Holding on to BTC even as prices continue to drop does not seem as bad as what it appears right now because BTC is moving toward more decentralization. The ultimate goal is having a decentralized cryptocurrency which BTC is currently heading towards.

Thanks for reading.