US becomes biggest Bitcoin mining hub after Chinese miners exodus

Source: AdobeStock / alexlmx

Following China’s crackdown on Bitcoin mining (BTC) earlier this year, the United States officially became Bitcoin’s largest mining hub, followed by Kazakhstan and Russia, researchers say. of Cambridge University to have found.

With a global hash share (or network computing power) of 35.4% at the end of August, the United States is now home to the largest share of Bitcoin hash power in the world, Michel Rauchs, Digital Assets Lead at the Cambridge Center for Alternative Finance (CCAF), written in a blog Publish published today on the University of Cambridge website. However, they stressed that “each model is an incomplete representation of reality which is based on specific assumptions, some of which may be questionable”.

In both cases, the conclusion is based on data from the university’s own Bitcoin electricity consumption. Index, which also shows how other countries, including Kazakhstan, Russia, Ireland and Canada, have increased their respective shares at the expense of China.

Source: Cambridge Bitcoin Electricity Consumption Index

The author said the updated data confirms the trajectory of the previous update (late April), which showed that the United States, Kazakhstan and Russia were already gaining market share before the crackdown in China.

“The immediate effect of the government-imposed ban on crypto mining in China was a 38% drop in the hashrate of the global network in June 2021 – which roughly matches the hashrate share of the China before the crackdown, suggesting that Chinese miners simultaneously ceased their activities, “the post said.

He added that “reported mining operations” in China are currently at zero, dropping from a high of 75.53% of the global Bitcoin mining total in September 2019.

The fourth largest share of hashrate is Canada (9.55%), followed by Ireland (4.68%), Malaysia (4.59%), Germany (4.48%), Iran (3.11%) and Norway (0.58%). These are then followed by “a long tail of countries,” Rauchs added, adding that the effect of China’s ban is “an increased geographic distribution of hashrate across the world.”

However, Rauchs noted that the most likely reason Germany and Ireland are on the list is that some minors may use virtual private networks (VPNs) or proxy servers, given that “there are little or no evidence ”of a mining operation there.

VPNs and proxy servers are tools that can be used to route traffic across other countries, effectively masking the real location of a miner. The article does not say, however, whether some of the miners using servers in other countries could actually be based in China.

In addition to the top Bitcoin mining countries listed in the blog post, data from the Bitcoin Electricity Consumption Index was also used to generate an up-to-date Bitcoin mining map detailing the share. Bitcoin hashrate in all countries of the world.

Dark colors indicate a higher share of bitcoin’s hashrate. Source: Cambridge Bitcoin Electricity Consumption Index


Learn more:
– China’s global Bitcoin hashrate was in decline before the crackdown
– China takes aim at camouflaged cryptocurrency miners ahead of winter season

– BTC Mining migration, challenges and forecasts for the post-crackdown industry
– China ready to toughen crypto crackdown

– Dominated by institutions, Bitcoin mining is also possible from home
– Bitcoin miners, take note – Biden’s plan would reshape America’s power system

Source Link

Please follow and like us: