- With the crackdown of cryptocurrency trading by Chinese regulators, the whole narrative of China controlling Bitcoin mining has now changed.
- The US has now emerged as the hottest destination for Bitcoin mining, boasting a share of 35.4% in the global mining space.
- Countries like Kazakhstan and Russia are the second and third most preferred places for crypto miners.
With the Chinese government declaring a blanket ban on all sorts of crypto activities in the country, its share of global Bitcoin mining has plummeted to almost zero.
According to a research conducted by the Cambridge Bitcoin Electricity Consumption Index (the CBECI), China which accounted for more than three-fourths of the total Bitcoin mining across the globe in September 2019 has now taken a U-turn with levels almost plummeting to a zero.
Now, the US is leading the world in global Bitcoin mining.
Source: Copyright © 2021 Kalkine Media
What caused a sudden drop in Chinese Bitcoin mining?
Last month, Chinese regulatory authorities intensified their crackdown on crypto activities and imposed a nationwide ban, making cryptocurrency-related transactions illegal in the country.
Several Chinese government agencies, including the country’s central bank, The People’s Bank of China, issued a joint statement highlighting a clampdown on the trading of cryptocurrencies across the country.
Chinese officials opined that the surge in the usage of cryptocurrencies had prompted a rapid increase in illegal fundraising, money laundering, pyramid schemes, and criminal activities, thereby disrupting the economic and financial order of the country.
Also, anyone found involved in any sort of crypto trading would be prosecuted and investigated for criminal liability in accordance with the law.
Is China’s loss in crypto mining space US’ gain?
The move caused panic in the global crypto market, tumbling down the prices of several major cryptocurrencies including that of Bitcoin.
Decline in global crypto mining since the Chinese ban
Initially, the Chinese crypto repression caused a 38% fall in global crypto mining.
However, reports suggest that owing to the successful overseas redeployment of some Chinese mining equipment after the ban, some respite has been seen.
America’s new-found crypto mining dominance
With the Beijing Government’s crackdown on Bitcoin mining, the US has now become the prime destination for Bitcoin miners.
The latest data for August 2021 suggests that the US’ Bitcoin mining share now stands at 35.4% up from 16.8% in April-end, followed by Kazakhstan with 18.1%, which earlier had 8.2%, and the third spot is taken by Russia having 11%, up from 6.8%.
Other countries like Canada, Malaysia, Norway, Germany, etc., are also attracting global Bitcoin miners.
The US, equipped with a flush of resources, is now the new hotbed for Bitcoin miners across the globe.