The Bitcoin Hash Rate Has Dropped. How Long Will It Take to Return? - Ep.252

Kevin Zhang, vice president of business development at Foundry, breaks down the latest developments surrounding China and bitcoin mining. Show highlights: 

how he came across crypto and which Bitcoin OG he joined at Bitcoin.com to help start its mining operations arm

what Foundry does and its relationship with Digital Currency Group (DCG)

why DCG wanted to build out a mining infrastructure business

what news from China in early March kickstarted the process of the mining ban

how China’s Central Television broadcasting company might have brought extra scrutiny to cryptocurrencies 

what the 100th anniversary of the Chinese Communist Party has to do with its Bitcoin mining ban

why the Inner Mongolia and Sichuan Bitcoin mining bans were especially disruptive for Chinese miners

how much of China’s hash rate Kevin estimates has been shut down since May

where are miners relocating to 

why Chinese mining equipment will not be allowed to turn on in the US

whether or not China’s Bitcoin mining ban will stick

why China banning bitcoin mining will be good for the network in the long run 

what significant risk to Bitcoin’s network is solved by China banning bitcoin mining

how much Bitcoin’s hash rate will drop and what effect this will have on miner revenue

why Kevin thinks that Bitcoin is good for renewable energy

how immersion cooling technology works

what tangible benefits miners could find by moving to North America

if El Salvador’s volcanic bitcoin mining plan is feasible

what Kevin predicts will happen in the Bitcoin mining industry for the latter half of 2021

Thank you to our sponsors!

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Episode Links

Kevin Zhang

Twitter: https://twitter.com/SinoCrypto 

Mining tweet storms:

https://twitter.com/SinoCrypto/status/1407524150885994497

https://twitter.com/SinoCrypto/status/1409227438262046723 

Content from previous work experience:

Greenridge Generation

https://www.theblockcrypto.com/linked/57943/a-power-plant-in-new-york-is-reportedly-mining-roughly-50000-in-bitcoin-each-day 

Project Spokane

https://medium.com/@derekbrouwer/the-bitcoin-barons-how-a-marketer-and-a-money-launderer-sold-montana-on-digital-gold-2a255c96c981 

Foundry, Subsidiary of DCG

Twitter: https://twitter.com/foundryservices

Website: https://foundrydigital.com/ 

Foundry USA Pool

Bit Digital: https://www.prnewswire.com/news-releases/bit-digital-joins-foundry-usa-pool-with-5-679-machines-adding-up-to-280-phs-of-compute-power-to-the-pool-301283792.html 

Bitfarms partnership: https://www.globenewswire.com/news-release/2021/04/23/2215897/0/en/Bitfarms-Partners-with-Foundry-to-Expand-Bitcoin-Mining-Fleet-and-Join-Foundry-USA-Pool-Instantly-Boosts-Operating-Hashrate-By-15.html 

China’s Bitcoin Mining Ban

Travis Kling noted 25 different announcements from China in June alone:

https://twitter.com/Travis_Kling/status/1410630499748388865 

Glassnode: mining difficulty to face its largest decrease ever

https://insights.glassnode.com/the-week-on-chain-week-26-2021/ 

The Block: hash rate dropped 50%, Foundry up while everyone else is hurting

https://www.theblockcrypto.com/post/109315/bitcoin-hashrate-declines-50-percent-china-mining-crackdown

Nic Carter: breaking down the hashrate migration

https://www.coindesk.com/bitcoin-unpacking-hashrate-nic-cart-migration

Secondhand mining equipment prices are spiking

https://www.coindesk.com/chinese-logistics-firm-airlifting-bitcoin-mining-machines-to-maryland-report

https://www.theblockcrypto.com/post/109301/secondhand-bitcoin-miner-supply-spiking-bitmain

Bitcoin miners shut down, 26 farms affected after Sichuan bans BTC mining

https://www.coindesk.com/sichuan-becomes-latest-chinese-province-to-order-bitcoin-miner-shutdown

https://decrypt.co/74075/bitcoin-hashrate-falls-17-overnight-after-china-mining-crackdown

China’s Inner Mongolia announced eight measures in its crypto ban

https://www.theblockcrypto.com/post/105973/china-inner-mongolia-crypto-bitcoin-mining-ban-measures 

Hash rate hits yearly low

https://www.coindesk.com/bitcoin-mining-hashrate-drops-low

Miners are moving to Kazakhstan

https://www.coindesk.com/chinese-bitcoin-mining-company-delivers-first-machines-to-kazakhstan

Tweet thread on how bitcoin miners reacted to the PRC’s May crackdown

 https://twitter.com/MustafaYilham/status/1396574185598590979

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