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

Unchained

Laura Shin

Tech News, Business News, News

4.6 • 1.3K Ratings

🗓️ 6 July 2021

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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! Crypto.com: https://crypto.onelink.me/J9Lg/unchainedcardearnfeb2 Tezos: https://tezos.com/discover?utm_source=laura-shin&utm_medium=podcast-sponsorship-unconfirmed&utm_campaign=tezos-campaign&utm_content=hero Conjure: https://conjure.finance 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 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hi, everyone. Welcome to Unchained, your no-hype resource for all things crypto. I'm your host,
0:07.3	Laura Shin, a journalist with over two decades of experience. I started covering crypto
0:11.6	six years ago, and as a senior editor at Forbes, was the first mainstream media reporter
0:15.8	to cover cryptocurrency full-time. This is the July 6, 2021 episode of Unchained.
0:21.9	My book, The Cryptopians, Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency
0:27.5	is available for pre-order. You can also purchase it on Amazon, Barnes and Noble, or bookshop.org,
0:33.2	or any of your other favorite bookstores. Go to bit.ly slash cryptopians. That's b-i-t dot
0:38.7	l-y slash c-r-y-p-t-o-p-i-a-n-s to pre-order today. TASOS is smart money. That's redefining what it
0:47.5	means to hold an exchange value in a digitally connected world. Discover how people are
0:52.4	reimagining the world around you on TASOS. Conjure brings any asset you want onto Ethereum
0:58.1	by allowing for users to create synthetic assets which track other markets. With zero interest
1:02.9	loans and unlimited assets, it's helping DeFi to consume tradfie. That's c-o-n-j-u-r-e dot finance.
1:10.4	Check it out. The crypto.com app lets you buy, earn, and spend crypto all in one place.
1:17.0	Earn up to 8.5% interest on your Bitcoin, and 14% interest on your stablecoins.
1:22.9	Paid weekly. Download the cryptop.com app and get $25 with the code Laura. The link is in the description.
1:30.6	Today's guest is Kevin Zhang. Vice President of Business Development at Foundry.
1:35.3	Welcome, Kevin.
1:37.2	Thanks for having me, Laura.
1:39.2	Before we get into all the Bitcoin mining news, and there is a lot of it,
1:43.2	why don't we just start with your background? Because you're kind of like a crypto OG.
1:47.9	Tell us how you got into Bitcoin.
1:50.8	Sure thing. So like many others, I heard about Bitcoin quite early back in college in 2011.
	...

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