Billdesk Payment Gateway: 'The Next Great Miner Migration Will Be Away From China' -- Says Poolin Executive

Global bitcoin (BTC) arithmetic, the network's computational power, is set to spread from China to the rest of the world -- a beneficial redistribution for Bitcoin. This view comes from Alejandro de la Torre, vice president of Poolin, a large mining pool headquartered in Hong Kong. Source: Adobe/Konstantin Yolshin

Speaking at Coindesk's Consensus event today, de la Torre said that many miners are actually looking to migrate from China, which has more than 501 TP3T of global arithmetic power, and are looking to spread out around the world, especially to Europe and North America, adding, "The next great miner migration will be from China to the rest of the world ."

The Chinese government reportedly recently pledged to "crack down on bitcoin mining and trading activities" as well as "prevent and control financial risks."

Cryptocurrency exchange Firecoin has suspended its cryptocurrency mining services and sales of mining equipment in mainland China, saying it will instead focus on its overseas operations, but adding that "the majority of users will not be affected by this change." There are also reports that other mining pool players including HashCow and BTC.TOP are also reviewing their operations in China in response to central government pressure on the mining industry. Meanwhile, Chinese bitcoin mining company BIT Mining Limited said it has signed a binding investment term sheet with a Kazakhstani company to co-invest in a cryptocurrency mining data centre in the Chinese neighbour.

Distribution of BTC arithmetic in mining pools on 24 May: source: btc.com

De La Torre says that mining has grown so quickly in China because of a combination of "two right factors" associated with the country's rapid growth in a number of industries: the fact that every component needed for mining equipment is made in China; and the distribution of hydroelectric plants throughout the country, which allows miners to use this type of energy. type of energy.

Another notable factor mentioned by de la Torre is China's rainy season, during which miners pack up their entire operations and relocate -- especially to Sichuan, a place touted as a bitcoin mining hub -- due to the lower cost of hydroelectric power in certain areas.

While there is currently a lot of controversy about Bitcoin's energy consumption and the so-called "green BTC," de la Torre argues that "more than 501 TP3T of mining in China is actually renewable."

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