Data released on Wednesday by the Cambridge Alternative Finance Center in the United Kingdom showed that the United States has surpassed China to become the world’s largest share of bitcoin mining. These figures show the impact of the crackdown on Bitcoin trading and mining initiated by the Chinese State Council or Cabinet in late May, which destroyed the industry and caused miners to shut down or move overseas.
Data shows that China’s share of computer power connected to the global Bitcoin network, known as the “hash rate,” has dropped from 44% in May to zero in July, and it was as high as 75% in 2019. The price of Bitcoin in India is rupee. As of 11:30 AM US Standard Time on October 14, 4.528 million.
Miners in other places have begun to fill the vacancies. Mining machine manufacturers have shifted their attention to North America and Central Asia, and large Chinese miners are also shifting, although the process is full of logistical difficulties.
Data shows that, therefore, the United States now accounts for the largest share of the mining industry, accounting for approximately 35.4% of the global hash rate as of the end of August, followed by Kazakhstan and Russia.
Bitcoin is created or “mined” by high-performance computers, usually located in data centers in different parts of the world, and they compete to solve complex mathematical problems in the process of intensive use of electricity.
Russia’s lower energy costs and cool climate have enabled some companies that use surplus electricity to benefit from the soaring bitcoin price earlier this year, but concerns about illegal mining are growing.
In a letter to the Moscow government in late September, Igor Kobzev, the governor of Russia’s Irkutsk region, pointed out the “avalanche growth” of energy tariffs and accused underground cryptocurrency mining.
According to the “Daily Telegraph” report on Wednesday, Kobzev said in the letter: “(The situation) is further aggravated by the mining ban imposed by the Chinese authorities and the relocation of large amounts of equipment to the Irkutsk region.”
Authorities elsewhere are more tolerant and even welcoming of Bitcoin mining, and the Chinese authorities announced stricter Bitcoin mining and trading regulations last month.
“Our current focus is to accelerate the construction of compliant mines in North America and Europe,” a representative of the mining machine manufacturer Yibang International Holdings told Reuters after the recent crackdown.
But industry participants are still hurt.
“As a veteran witnessing the birth of this industry in China, I think the situation today is very sad,” said Mao Shihang, the founder of F2Pool, the world’s largest Bitcoin mining pool and the co-founder of Singapore-based crypto asset Cobo. Managers and custodians.
“China is losing its share of computing power… The focus of the industry is shifting to the United States,” he said before the Cambridge data.
© Thomson Reuters 2021