A pool of cryptocurrency mining is a group that combines their computing resources to transmit a block of transactions, ensuring the safety of a blockchain network.
O poolin, Chinese cryptocurrency mining pool, resumed payments to investors of your tokens backed by the rate of hashes of the networks Bitcoin (BTC) and Ethereum (ETH).
Hash rate refers to the computational power used to mine new blocks. It is a metric to measure competition between miners in a network.
You tokens Poolin monitor the computational performance of the two biggest blockchains in the world and guarantee a kind of dividend to those who invest in their assets.
The decision to resume payments comes amid the implementation of machines for mining cryptocurrencies after the suspension of activities in China.
In an announcement this Monday (16), Poolin said that 18% of its mining machines, used as support for pBTC35A, your token backed by the Bitcoin network hashe rate, were shipped out of China and turned back on — about 50 days after the company said it would suspend mining payments to migrate its equipment due to the disruption caused by the Chinese government.
However, the process resulted in extremely high prices and, in general, reflects the challenges Chinese bitcoin miners may face amid its exodus from China that was once the largest crypto mining hub in the world.
For example, when Poolin introduced the pBTC35A token—dependent on the work of miners located outside of China—he was able to achieve an electricity consumption rate of $0.058 per kilowatt/hour (kWh).
Now, after the relocation, whoever stores and does the staking — “lock” the asset for long-term yields — the token receives a dividend after deducting an electricity consumption cost of $0.08 per kWh, which represents a profit margin of nearly 38%.
In a partnership, to pETH18C, its token backed by the Ethereum network’s rate of hashes, the rate of electricity consumption has risen to $0.15 per kWh — double the cost of $0.0750 per kWh when mining machines with graphics cards (GPUs) they were still in China.
Except for the cost, Poolin said that the “recurring outbreaks of COVID-19 impacted both national and international logistics”, in addition to exacerbating the difficulty of migrating a significant amount of hardware:
Frequent loading/unloading, multiple stops and long-distance transport caused damage to some mining machines (more than 20% of miners needed to carry out repairs, according to current status) and increased restructuring and storage of mining machines drastically increased the burden on local operations and maintenance teams.
Poolin said the mining hardware that backs the hash rate tokens has been shipped around the world while its founder and senior directors are trying to close deals with mining units and energy companies in the US.
In total, there are 214,601 thousand pBTC35A tokens in circulation, equivalent to 214,601 terahashes per second (TH/s). So far, Poolin has taken over the equivalent of 39.9 thousand TH/s. It has recovered the online machines rate by 25% for ether miners supporting its pETH18c token.
Poolin expects these deployed equipment rates to double in the next two to three weeks and continue to rise as he finishes reallocating hardware.
China’s suspension of the crypto mining sector has not only shaken the country’s hashe rate dominance, it has also resulted in a correction of market share among mining pools.
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