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After Bitcoin dropped from $8,000 to $3,600 the hash rate dropped by almost 50%. The difficulty level, that only adjusts every 2 weeks, dropped by 16%. The second biggest drop in Bitcoin’s history.

At current Bitcoin prices of ~$6,000 we do have a problem. Mining is already centralized in China, but after the halving it seems that this will even be more the case. It won’t be profitable anymore to mine Bitcoin for the majority of European miners, as well as the American miners. Where will the mining end up? Right, China…

In China one can still mine Bitcoin for a cost as low as $3,000 currently and $6,000 after the halving, which will make it still profitable at current prices, while for the Americans the price need to more than double to be profitable again. Not a good-looking situation.

The scariest thing is that “whoever controls the mining, controls the network”, so if China will deliver 80%-85% of the mining power, it also controls the Bitcoin network…

#bitcoin #mining #China

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17 COMMENTS

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