The Bitcoin Hash Rate Has Dropped. How Long Will It Take to Return? - Ep.252
Unchained
00:00
The Resilience of Bitcoin Amidst Hash Rate Challenges
This chapter discusses the implications of Bitcoin's hash rate drop, particularly the shift in decentralization as China's contribution falls below 50%. The speakers emphasize the robustness of Bitcoin mining technology and its ability to adapt swiftly to changes, reducing the risk of a 51% attack.
Play episode from 31:29
Transcript
Transcript
Episode notes
Kevin Zhang, vice president of business development at Foundry, breaks down the latest developments surrounding China and bitcoin mining. Show highlights:
- how he came across crypto and which Bitcoin OG he joined at Bitcoin.com to help start its mining operations arm
- what Foundry does and its relationship with Digital Currency Group (DCG)
- why DCG wanted to build out a mining infrastructure business
- what news from China in early March kickstarted the process of the mining ban
- how China’s Central Television broadcasting company might have brought extra scrutiny to cryptocurrencies
- what the 100th anniversary of the Chinese Communist Party has to do with its Bitcoin mining ban
- why the Inner Mongolia and Sichuan Bitcoin mining bans were especially disruptive for Chinese miners
- how much of China’s hash rate Kevin estimates has been shut down since May
- where are miners relocating to
- why Chinese mining equipment will not be allowed to turn on in the US
- whether or not China’s Bitcoin mining ban will stick
- why China banning bitcoin mining will be good for the network in the long run
- what significant risk to Bitcoin’s network is solved by China banning bitcoin mining
- how much Bitcoin’s hash rate will drop and what effect this will have on miner revenue
- why Kevin thinks that Bitcoin is good for renewable energy
- how immersion cooling technology works
- what tangible benefits miners could find by moving to North America
- if El Salvador’s volcanic bitcoin mining plan is feasible
- what Kevin predicts will happen in the Bitcoin mining industry for the latter half of 2021
Thank you to our sponsors!
Crypto.com: https://crypto.onelink.me/J9Lg/unchainedcardearnfeb2
Conjure: https://conjure.finance
Episode Links
Kevin Zhang
- Twitter: https://twitter.com/SinoCrypto
- Mining tweet storms:
- Content from previous work experience:
Foundry, Subsidiary of DCG
- Twitter: https://twitter.com/foundryservices
- Website: https://foundrydigital.com/
- Foundry USA Pool
-
- Bit Digital: https://www.prnewswire.com/news-releases/bit-digital-joins-foundry-usa-pool-with-5-679-machines-adding-up-to-280-phs-of-compute-power-to-the-pool-301283792.html
- Bitfarms partnership: https://www.globenewswire.com/news-release/2021/04/23/2215897/0/en/Bitfarms-Partners-with-Foundry-to-Expand-Bitcoin-Mining-Fleet-and-Join-Foundry-USA-Pool-Instantly-Boosts-Operating-Hashrate-By-15.html
China’s Bitcoin Mining Ban
- Travis Kling noted 25 different announcements from China in June alone:
- Glassnode: mining difficulty to face its largest decrease ever
- The Block: hash rate dropped 50%, Foundry up while everyone else is hurting
- Nic Carter: breaking down the hashrate migration
- Secondhand mining equipment prices are spiking
- Bitcoin miners shut down, 26 farms affected after Sichuan bans BTC mining
- China’s Inner Mongolia announced eight measures in its crypto ban
- Hash rate hits yearly low
- Miners are moving to Kazakhstan
- Tweet thread on how bitcoin miners reacted to the PRC’s May crackdown
Learn more about your ad choices. Visit megaphone.fm/adchoices
The AI-powered Podcast Player
Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
