China today holds 65% of Bitcoin's mining power, this fact is a major concern for bitcoiners who care about the decentralization of the network. But that is about to change.
The centralization of bitcoin mining in China is due to two factors: cheap energy and easy access to hardware. The main company that produces specific hardware for mining is Bitmain, which came to dominate 60% of the market.
This concentration has always worried many investors and holders, as it would be enough for a well-executed execution of a decree in China for the Bitcoin network to lose much of its power. However, many point out that such a measure is really difficult to implement, since many provinces depend on mining.
Even the lack of rain can affect the network, as we show in the text "Chinese bitcoin miners suffer from power outages".
Change of center and LinkedIn investing in BTC?
According to Sully Yu, a Whatsminer employee, about 40% of orders for the new M30 mining machines went abroad, mainly Europe and the United States.
Probably the orders of Bitmain's S19 Pro miners were even more demanded by these countries. And really, both in the United States and in Europe, we see the construction of large mining farms.
In the United States, for example, the world's largest mining farm is being built, with space equivalent to 57 football fields and 300 megawatts available.
Meanwhile in Canada, Blockstream continues to lease space for corporate mining, which counts LinkedIn founder Reid Hoffman as one of the investors.
The entry of this large capital will cause Bitcoin mining to leave China. In conjunction with this, we also have the creation of new protocols such as BetterHash developed by Blockstream:
“BetterHash is an enhanced mining pool protocol, which gives individual miners the ability to control which Bitcoin transactions to include in their newly mined blocks.
As a result, the Bitcoin network becomes more decentralized and resistant to censorship, as operators of large pools fail to centrally determine which transactions to include in blocks.“
Announced Blockstream on its official blog
See also: How to mine Bitcoin? Worth it?