US Overtakes China To Become Bitcoin’s Number One Mining Hub
- In August, the US accounted for over 35% of the global mining hashrate
- China’s mining power fell from 44% in May to 0% in July this year
The US Overtakes China as Top Bitcoin Mining Hub
The US is now officially the world’s number one destination for bitcoin miners. That is the conclusion of fresh data released from Cambridge University. To put this into numbers, the US was responsible for as much as 35.4% of bitcoin’s global hashrate in August. In comparison, for April, the US share of the global hashrate stood at 17%.
Hashrate, a term from the crypto space, measures the computing power required to create bitcoin. On that note, most of bitcoin’s mining happened in China until recently.
Ever since bitcoin was created in the aftermath of the financial crisis in 2008, China has been the home of bitcoin mining.
Recently, two months ago to be precise, all this changed when the Chinese government ordered a full ban on crypto. The crackdown from Beijing in late May meant all cryptocurrency trading, mining, or any other crypto-related activity was prohibited.
China Now Contributes 0% to Bitcoin Mining
As a result, Chinese miners rushed to relocate their operations to cheap energy sources around the world. It turns out, many of them have chosen to end up in the US. Texas, in particular, has one of the lowest energy prices in the world. Moreover, the US has plenty of renewable power sources, making the country an attractive place to miners.
That said, China’s contribution to the global hashrate fell from 44% in May to 0% in July. Less than a year ago, however, China was the undisputed leader with a share of 75% of the global hashrate.
In the meantime, not every miner seems to be attracted to renewable sources. Kazakhstan, for instance, ranks at second place in terms of its bitcoin mining share. As much as 18% of all crypto mining happens in Kazakhstan, a country which neighbors China.
Many crypto proponents argue that the ban from China was actually beneficial for the cryptocurrency market. A recent example is a commentary from Edward Snowden. The former contractor at the National Security Agency said earlier this month that Beijing’s crackdown has made bitcoin stronger.