Jul 6, 2021

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

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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