China controls much less Bitcoin [BTC] mining power than people actually think, consistent with a new survey.
Published earlier on 16th July by asset manager Fidelity and crypto research firm BitOoda, the survey reveals that China is really liable for around 50% of Bitcoin mining — not 65%.
China Actually Controls Less Bitcoin Mining Hash Rate
Analysts used what they describe as various sources, also as “confidential conversations” with miners, who agreed to divulge information on aspects like power cost on the condition that they remained anonymous.
“We were able to locate ~4.1GW of power across 153 mining sites, including 67 sites or ~3GW power capacity, with power price data provided upon condition of anonymity,” they added within an accompanying web-blog post.
BitOoda further found that 14% of mining now comes from the U.S. Nonetheless, estimates in China were hard to corroborate, and therefore the 50% igure remains hospitable to interpretation.
“Our conversations lead us to believe that we’ve accounted for the bulk of capacity within the US, Canada and Iceland, but only a little fraction in China and the ‘Rest of World’ category,” the post continued.
As reported earlier, previous guesses about China’s involvement in Bitcoin put its capacity share at around 65%.
United States Leading Within Mining Sector
Continuing, the survey produced more insights, like the impact of China’s flood, or “hydro” season on miner revenue.
For around 6 months of the year, miners located in provinces like Sichuan sell less Bitcoin to fund expenses for roughly half the year.
“We argue against conventional wisdom, which suggests that low power prices drive Hashrate growth during the flood season,” the post added.
“In our view, the flood or hydro season shifts the value curve down for 6 months of the year, resulting in lower sales of Bitcoin to fund operating expenses as miners accumulate capital to fund capacity growth.”
In line with an accompanying chart, average price gains fluctuate inside and out of doors of hydro seasons, while Bitcoin network hash rate growth stays stable.