U.S. Now Top Bitcoin Mining Hub After China Ban
According to data from Cambridge Centre for Alternative Finance, the U.S. is now leading the world in Bitcoin mining.
- Cambridge Bitcoin Electricity Consumption Index claims that the U.S. is the biggest contributor to the Bitcoin mining hashrate.
- Bitcoin mining operations in mainland China have “effectively dropped to zero," Cambridge Centre for Alternative Finance noted.
- After the U.S., Kazakhstan and Russia are the biggest Bitcoin mining nations.
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Data from Cambridge Centre for Alternative Finance (CCAF) indicates that China’s contribution to Bitcoin’s global mining hashrate has completely declined.
U.S. Becomes World Leader for Bitcoin Mining
New research data shows that Bitcoin mining operations in mainland China have “effectively dropped to zero,” making the U.S. the biggest contributor to Bitcoin mining.
The revelation was made in the Cambridge Bitcoin Electricity Consumption Index (BECI), a bi-annual analytics report ranking countries on the basis of their share of the global hashrate.
Researchers at Cambridge Centre for Alternative Finance (CCAF) analyzed geolocational mining facility data gathered in collaboration with four Bitcoin mining pools: BTC.com, Poolin, ViaBTC, and Foundry.
They found that the U.S. accounts for 35.4% of the global hashrate as of August, up from 16.8% at the end of April. Hashrate is the computational power to process all transactions on the Bitcoin network. The index shows that the U.S. added 42.7 exahashes per second (EH/s) of a global hashrate of 120.62 EH/s in August 2021.
The data also indicates that Bitcoin mining activity has fully dwindled in China following the Chinese Communist Party’s harsh crackdown on the sector. “Mining operations in mainland China have effectively dropped to zero,” the report said. In September 2019, China’s dominance in global Bitcoin mining was 75.5% as per CCAF’s data.
China’s crackdown has resulted in many mining operations moving to other more crypto-friendly nations. The global hashrate dropped by 38% as China ordered a mining shutdown in June 2021, but the hashrate recovered by 20% over July and August, according to CCAF’s digital assets lead Michel Rauchs.
Rauchs added that the hashrate is now heading toward full recovery, negating the impact of China’s ban. Many crypto enthusiasts see the exodus of mining operations from China as a positive for Bitcoin as it has helped make the network more decentralized.
The index notes that Kazakhstan is the second-largest contributor to the Bitcoin mining hashrate, providing 18.1%. Russia follows with 11%. Other major contributors include Canada, Ireland, Malaysia, Germany, and Iran.
While China has sought to ban the crypto sector in recent months, many U.S. states have welcomed the growth of the mining industry. New York, Texas, Kentucky, Wyoming, and others have offered tax exemptions and cheap utility rates in a bid to attract miners.
As interest in Bitcoin mining has surged in the U.S., sales for ASIC mining rigs have also increased. Bitmain, one of the leading ASIC manufacturers, today signed a deal with a New York firm to supply 10,000 of its flagship Antminer machines.
After China’s ban, the environmental impact of Bitcoin mining has been a hot topic of debate this year. In July, Bitcoin Mining Council claimed that mining is 56% sustainable, while many firms have begun looking into mining from nuclear energy and offering eco-friendly incentives. El Salvador has gone as far as using its volcanoes to mine Bitcoin after adopting the asset as legal tender. Despite China’s willingness to shut down the sector, it seems that other parts of the world are taking a more open approach to adopt mining and cryptocurrency technology.