Before May 18, 2021, China had once become the world's largest "mining" country with three advantages: favorable power supply in the Chinese market, strong power grid infrastructure and hard-working Chinese.
July 20, 2021 /MarketersMedia/ —
On May 18, 2021, the relevant national regulators and local development and reform commissions issued a series of measures to "crack down on bitcoin mining and trading", including the "Announcement on the Establishment of a Reporting Platform for Cryptocurrency "Mining" Enterprises". The massive bitcoin mining industry in China has basically come to an end. At this stage, it's a loss of money for the miners. For the Bitcoin network, it is a period of declining computing power. For the market, it is another downturn in prices.
SAI: Chinese computing power goes overseas under carbon neutrality goal
At this year's two sessions in China, emission peak and carbon neutrality were written into the government work report for the first time, which made clear the general goal of achieving emission peak in 2030 and carbon neutrality in 2060, which also means that China will accelerate the energy transformation.
According to the data of several industry statistics institutions, the annual power consumption of bitcoin mining in the world is about 127.48 terawatt-hours, which has exceeded more than 100 countries and regions, ranking 29th in the world. Without policy intervention, the energy consumption of bitcoin blockchain in China will reach its peak in 2024, which is about 296.59 terawatt-hours, resulting in 130 million tons of carbon emissions, which is obviously contrary to the "double carbon" strategy formulated by the Chinese government.
After the implementation of the policy, China's domestic bitcoin mines are facing a severe survival crisis. A large number of miners said that the mine where their mining machines are located has been shut down, and they plan to sell their mining machines. Some miners also said that they plan to transport the mining machines overseas to continue mining. For Chinese miners who want to continue to make a fortune in Bitcoin mining, going overseas has become a foregone conclusion.
In North America, represented by the United States and Canada, where local policies are relatively stable and the legal system is relatively sound, many large mining companies have moved in, but the overall cost of mining in North America is too high. The U.S. has also imposed a 25% tariff on Chinese electronics. For example, it costs almost 3.5-5 million yuan to build a 10,000-load mine in China, and 18-40 million yuan for the same scale outside China. Even in Texas, where electricity is cheap and renewable energy is abundant, the input cost of 10,000 kilowatts of load costs about $35 million, seven times the domestic cost in China.
Kazakhstan is a relatively cheap choice. The AIFC Investment Department of Kazakhstan recently publicized through Chinese media to welcome Chinese miners to enter the country. Within three to four weeks, the compliance custody mine can be established. It is reported that Kazakhstan is rich in energy resources, closer to China, and its manpower and construction costs are lower than those in North America.
Thus, even the United States and Kazakhstan, which are known as the best places to migrate, both have some problems. In the midst of the global low carbon transition, the challenges and changes in bitcoin mining are underway.
Change 1: Mining energy green and sustainable
According to the basic form of energy, they can be divided into primary energy and secondary energy. Primary energy is the energy that exists in nature and can be obtained by certain technology development without changing its nature and conversion through processing.
Change 2: Turning the whole into zero, computing power center can be mobile
In the past, computing power centers often operated in the form of plants. Under this boom of going overseas, mobile mining farms that integrate multiple sets of equipment such as hot and cold isolation, fans, networks, monitoring and distribution cabinets are rapidly gaining popularity. Mining may be decentralized and clean. Wind energy and water energy have obvious periodic phenomena, so the traditional computing power center can't adapt to the periodic changes of energy. Compared with this, SAIWATT's power supply scheme with stable use of clean energy is matched with portable mobile mines, which directly gets rid of geographical limitations, improves the utilization rate of various clean energy sources, and makes some unstable energy sources effectively converted into computing power.
Change 3: mining industry plug-in caused by mining machine upgrade
Following Moore's Law, chip technology has gradually transitioned from 14nm to 7nm, and then to 5nm production lines flowing and put into official production. As a result, the frequency of updating the computing power industry miners is also gradually accelerated. The energy consumption of miners is halving year by year while the computing power is increasing exponentially. As the price of cryptocurrency stabilizes, the mining industry is likely to gradually transform into some subsidiary industries with distinct cyclicality and high energy consumption industries. In the future, the mining industry may be integrated into various industries like a plug-in for energy value conversion, solving the pain point for human beings that existing unstable energy cannot be quickly converted into value.
Change 4: "computing + power + heat" integration of ecology
SAI's technology architecture is an essential infrastructure for industrial integration, including such as SAICHIP, which aims to provide efficient new energy chips, and SAIWATT, which guarantees a continuous and stable power supply and solves the problem of unstable supply of clean energy like wind and solar. In addition, SAI also launched a SAIBYTE computing power integration platform with higher cost performance on the business side to further improve energy utilization efficiency. SAI integrates the aforementioned SAIHEAT thermal energy conversion technology, realizing a perfect industrial closed loop, and making "computing + electricity+heat" an open, environmentally friendly and more compatible mining ecological platform.
For the bitcoin mining industry, after such a massive reshuffle, the market will also develop on a more rational and scientifically consistent path. Only by solving the bitcoin energy consumption problem at the source can we better stabilize and regulate the cryptocurrency market and make the blockchain industry move forward in a steady manner.
Report Source: https://sai.tech/?p=3789
Contact Info:
Name: Sai Sai
Email: Send Email
Organization: Beijing SAI Technology Co., Ltd.
Website: https://sai.tech/
Source: MarketersMedia
Release ID: 89036997
