A fresh report by CoinShares Research indicates 65% of all Bitcoin mining power comes from China. The number is at its highest in at least two years, with analysts naming cheap electricity as a natural cause.
“China is a large country and there are many poorly developed areas with low-price, abundant electricity, such as Xinjiang, Yunnan, Inner Mongolia and Sichuan. As we all know, electricity costs and mining machines are two important factors for mining costs, so mining companies and individual miners prefer setting up mines in China,” comments an anonymous mining market analyst.
The increasing centralisation of Bitcoin mining to China can in theory threaten the Bitcoin network. If Chinese miners would for any reason cease their mining, a majority of the Bitcoin network’s mining power would be wiped out, weakening its security.
However, this threat is only theoretical. Even if the Bitcoin network’s mining power would decrease signifanly, the network would still have enormous mining power and remain immune to attacks. coinmotion.com