China remains an important role in the world of bitcoin mining.
First of all, it has great capability of increasing industry cohesion, thanks to its geographical location. Besides, through very cheap labor costs China is able to gain the competitive edge in the rapid manufacture of miners. The
endowment of natural sources is also a definite advantage to China, allowing massive mining farms in China to capitalize on cheap electricity.
On 21st November 2019, Jiananyunzhi, a Hangzhou-based miner manufacturing company was listed on the Nasdaq exchange. It is deemed as the first successfully listed enterprise in China that is specialized in the production of bitcoin miners.
Since last June, the Bitcoin network hash rate has increased by 80%, probably because of the extensive use of advanced mining machines. As shown by a new report by CoinShares, Chinese bitcoin miners comprise about 66% of the world’s Bitcoin processing power, reaching their highest level since June, 2019 when they first exceeded 60%. Chris Bendiksen, the research director of CoinShares claimed that the extensive use of more advance mining machines is the main cause for this increase.
Yunnan, Xinjiang, Inner Mongolia and Sichuan in China have been the world’s most important mining centers and at least half of the global hash rate is concentrated in Sichuan. Other major centers of bitcoin mining are mainly distributed over America, Russia and Kazakhtan.
As it will become easier for Chinese manufacturers to export chips of mining machines in the future, the bitcoin computing power is expected to be well-distributed around the world.