Coinshares, the cryptocurrencies management investment vehicle, has released a 19-page research paper titled “The Bitcoin Mining Network—Trends, Marginal Creation Cost, Electricity Consumption & Sources.” This report became a fresh version of Coinshares bi-annual mining paper appeared in May 2018. The report states that there is “no more than 60% of miners currently remain within Chinese borders.” Chinese miners “mainly situated in a handful of provinces such as Sichuan, —Yunnan, Guizhou, Tibet, Xinjiang, Western Inner Mongolia and Heilongjiang. Out of these Sichuan is where 80% of the Chinese miners are located.”
This means that Sichuan hosts about 48% of total global mining force now. The analysts come to conclusion that there is a big migration of Chinese miners to Russia, Canada and USA, and this trend means relocation of several billion dollars the miners are ready to invest into their operations.
The pursuit to establish activities in Scandinavian countries is being thwarted by the Norwegian government’s recent decision to set up higher electricity tariffs for crypto miners starting from the beginning of next year. The Swedish miners’ saga was shadowed by the suspicious movement of team behind mining company NGDC operated in Norrbotten (the province of Sweden) abroad while their business entity has reportedly unpaid electricity bills amounted to $1,55 million.
Another takeaway from the report is that 77.6% of global Bitcoin mining is conducted from renewable energy sources, and this fact highlights the importance of such economic activities fro driving up the acceleration of renewable energy sector’s development. 95% of Chinese mining occurs using renewable energy versus 17% in Russia that plays en exception since other world popular spots for mining follow Chinese model and heavily rely upon on renewable sources of energy.