The great mining migration
Contrary to what it announced earlier, Chinese Sichuan region will not allow its miners to stay until September to benefit from the cheap hydropower of the rainy season. In a note released last Friday it ordered its biggest miners to shut down by June 25. This is not surprising at all, giving that an authoritarian state can do whatever it wants, and it has been clear for some time now that China wants to get rid of its miners.
We still believe it’s a good thing, even if Bitcoin hashrate has been steadily dropping since May. Banned from China, its miners will migrate to other countries that will propose cheap and preferably green energy, and many places are fighting to attract them, like El Salvador with volcano-powered plants, or Texas with solar and wind powerplants, or Canada with hydroelectric stations.
Furthermore, miners’ exodus from China will put an end to the fears of centralization (by the end of 2020 Chinese miners accounted for around 65% of the network’s hashrate) and will help build a healthier network.
The hashrate will rise again, more decentralized and greener than before.
