US replaces China as world’s largest Bitcoin mining hub

China’s ‘violent crackdown’ on Bitcoin mining and trading from the end of May 2021 to reduce financial risks has “devastated” the Bitcoin mining industry, forcing miners to closed or moved abroad.

Data released by the UK’s Cambridge Center for Alternative Finance shows China’s share of the computational “power” of computers connected to the global bitcoin network, known as the “hash rate”, fell to zero in July 2021, from 44% in May 2021 and 75% in 2019.

Mining activity elsewhere continues to stagnate as operators turn their attention to North America and Central Asia. Large mining companies in China are also moving, although the process is logistically fraught with difficulties.

As a result, the US becomes the mining address with the largest market share globally, accounting for about 35.4% of the worldwide hash rate as of the end of August. The next positions belong to Kazakhstan and Russia.

Bitcoins are created, or “mined,” by high-powered computers, often located in data centers in different parts of the world, that compete to solve complex algorithms in the world. an energy-intensive process.

Authorities elsewhere outside of China are still being more lenient, or even welcoming, of Bitcoin mining. Meanwhile, the Chinese authorities have announced very strict regulations for Bitcoin mining and trading, even this past September strengthened the regulations even more.

“Our current focus is on accelerating the construction of suitable mining centers in North America and Europe” after China continued to “suppress” this activity over the past month, the company said. mining rig manufacturer Ebang International Holdings said.

However, the migration process is not straightforward, and in general Bitcoin miners have been significantly “bruised” following China’s “suppression” campaigns.

Reference: Reuters