With every action, particularly one which is imposed on markets, there are usually two types of effects – the seen and the unseen. In the case of Bitcoin’s third block halving, the seen effect will be the change in the cryptocurrency’s price, while the unseen effect will be the movement in the distribution of hashrate. As regular debates on various Internet forums can attest, the price has been the focus, but if certain events line up, the hashrate could see more volatility.
China, while being the epicenter of the COVID-19 pandemic, is also the epicenter of Bitcoin’s mining. According to Cambridge University’s Center for Alternative Finance, as much as 65.08 percent of the global Bitcoin hashrate is concentrated in the Asian giant.
This figure is based on the average monthly share of total hashrate, according to data provided by BTC.com, Poolin, and ViaBTC. The aforementioned three mining pools, in the past 24 hours, collectively mined 49 blocks.
On asked about the centralization of Chinese miners, Alejandro De La Torre, VP at Poolin, said as part of a HashR8 podcast panel discussion that while China was “at the right place at the right time” during the initial phase of Bitcoin, now “miners are branching all over the globe.” As Bitcoin continues to grab headlines around the world, the hashrate will follow, and move out of Chinese centralization, he added. Read More