China controls far less Bitcoin mining power (BTC) than people think, according to a new survey.
Released July 16 by asset manager Fidelity and crypto-research firm BitOoda, the survey reveals that China actually accounts for about 50% of Bitcoin’s mining, not 65%.
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The analysts used what they describe as a variety of sources, as well as „confidential conversations“ with the miners, who agreed to disclose information on issues such as energy costs on condition of anonymity.
„We were able to locate ~4.1GW of power at 153 mining sites, including 67 sites or ~3GW of power capacity, with power price data provided on condition of anonymity,“ they summarized in an accompanying blog post.
BitOoda also found that 14% of mining now comes from the United States. However, estimates in China were difficult to corroborate, and the 50% figure remains open to interpretation.
„Our conversations lead us to believe that we have accounted for most of the capacity in the United States, Canada and Iceland, but only a small fraction in China and in the ‚Rest of the World‘ category,“ the blog post continued.
As Cointelegraph reported, previous estimates of China’s share of Bitcoin capacity were around 65%.
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The survey produced more information, such as the impact of the flooding in China, or the „hydro“ season on miners‘ earnings.
During six months of the year, miners located in provinces like Sichuan sell less Bitcoin Cycle to finance the expenses of about half of the year.
„We argue against conventional wisdom, which suggests that low energy prices drive the growth of Hashrate during the flood season,“ the blog post states.
„In our opinion, the flood or hydro season shifts the cost curve downward for 6 months of the year, leading to a reduction in Bitcoin sales to finance operating costs as miners accumulate capital to finance capacity growth.“
According to an attached graph, the average price increase fluctuates inside and outside the hydroelectric stations, while the hash rate growth of the Bitcoin network remains stable.