As Reports Say China's Bitcoin Mining Industry Impacted The Most This Year

The bitcoin mining rigs are facing a tough time. With Covid-19 related issues, they are being viewed as a burden for governments. Why is it so?

What Has Affected The Bitcoin Mining Industry In China?

Showing the industry has grown exponentially during the last six months, the researchers and analysts from Tokeninsight published its 2020 Q2 Cryptocurrency Mining Industry Report. China’s bitcoin mines suffered a great impact in H1 as the findings indicate cryptocurrency mining has expanded a great deal. 

The study shows a lot has happened in the bitcoin mining industry during the first half of 2020 as Tokeninsight published its 2020 Q2 Cryptocurrency Mining Industry Report 

Several topics that affected the bitcoin mining industry this year and the countries that are welcoming these operations is the discussion on the new research paper. The fact that the Uzbekistan government established a national mining pool in January was highlighted by Tokeninsight. 

Furthermore, it was noted that Canada has Quebec’s Hydropower Agency allowing those bitcoin miners to obtain almost 300MW of electricity. 

It was found that bitcoin mining according to the government of Ukraine does not require any of the so-called government supervision and intervention last in February. Missoula County, Montana created new regulations for the bitcoin miners the following month. 

The public bitcoin miner might be able to draw nuclear energy in May according to The Acting Minister of Energy of Ukraine.The opinion of the local government officials thereby approved in April, in Sichuan, the Hydropower Consumption Demonstration Enterprises. 

The second batch of consumption enterprises approved in Sichuan was reported. Finally, according to its plans, the parliament of Kyrgyzstan is set to tax and supervise digital asset miners in June.

China has been the hardest hit in 2020 as the country has seen a significant impact from a variety of reasons, according to Tokeninsight. 

The Tokeninsight Researcher’s Opinion  

The researcher mentioned in the Tokeninsight that COVID-19 caused mining rig shipment delays, the revenue was cut in half for Chinese miners with the bitcoin halving, mining machine manufacturers like Canaan and Bitmain reported internal disputes, as also the report mentioned the mining policy changes in Sichuan. 

A trend of new players entering the bitcoin mining rig manufacturing sector was noticed by Tokeninsight. 

The paper notes that the mining machine manufacturing sector in terms have new players eagerly waiting to enter the field as the old overlords are also thereby trying their best to update the technology manufacturing leading products in the market. Being launched one after another in the first half of 2020 was the new generation mining machines including Bitmain’s S19 and S19 Pro, WhatsMiner M30 series, and Canaan’s A1146 Pro and A1166 Pro.

Further adding the report says,

It is indeed that the new generation of mining machines has been greatly optimised as well as improved in terms of performance and the power consumption from the data published by several manufacturers.

Semiconductor research and development are the core competition between mining rig manufacturers according to the study. 

The Highlight Of The Chips 

The Tokeninsight researchers' highlight that chips will improve in the coming years as several mining rig manufacturers leverage 10-7 nm chips. 

The paper further explains that Samsung and TSMC have deployed 3nm chips and both plan to mass produce 3nm in 2022, at the current chip research and development level. TSMC has already planned for 2nm and is conducting research and development with mass production in 2024 although 3nm is said to be a node approaching the physical limit. 

The Tokeninsight researchers add that the field of AI chips will become a battleground as mining hardware is facing an accelerated iteration period. 

China’s bitcoin mining industry is feeling the pressure from the 2020 monsoon season in Asia additionally to the problems with Covid-19 supply chain delays, and government rules. Causing 20% hash rate losses for several Chinese bitcoin mining operations on Tuesday, August 18 was the excessive flooding in the Sichuan during the last five days. 

Concluding With Hope For The Best

With an outlook for a better tomorrow where there are no Covid-19 related problems, the Chinese bitcoin mining industry views innovations. So when the bitcoin mining rigs get updated by then, there are chances for the industry to build a more robust infrastructure. Now we give the best from the world of bitcoin. As researchers in Tokeninsight sites, there are more research and development put into the development of more updated machinery.  

As the news is doing the rounds, there are many more miners depending on the decisions taken by the government regarding regulation as well as that which could otherwise pose to be the nemesis of the cryptocurrency. Bitcoin or no bitcoin, the mining rig manufacturers are now finding the current space a little bit difficult. 

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