The United States has replaced China as the world’s Bitcoin mining epicenter. China is presently facing an unprecedented situation in which it has lost its status as a crypto mining industry leader.
According to recent studies, the United States has surpassed China to become the world’s largest bitcoin miner, for the first time. This is despite the fact that China’s involvement in bitcoin mining hashing power has dramatically decreased following the government’s ban, which took effect earlier this year.
The U.S Takes The Lead
China was unquestionably the hash rate leader a year ago. However, in recent months, things have changed dramatically.
In June 2021, the blanket ban had a significant impact on the global hash rate, which dropped by 38% in its first month. Prior to China’s increase in police state tactics against decentralized cryptocurrencies, China’s share of the global hash rate was similar to where it is today.
According to a recent study from the University of Cambridge, as of August 2021, the United States has 35.4 percent of the global hashrate share. Some states in the United States, including Texas, Wyoming, New York, and others, have crypto-friendly politicians who have offered tax breaks and other incentives to attract cryptocurrency miners as a result of lower energy expenses.
Kazakhstan is the second-biggest contributor to the bitcoin mining hashrate at 18.1%. Russia follows with a share of 11% of all crypto mining. Germany (4.48%), Iran (3.11%), Malaysia (4.59%), Ireland (4.68%), and Canada (9.55%) are other notable contributors.
What’s the impact of China’s Bitcoin ban on the mining industry?
Since 2017, China has been notorious for issuing severe crypto restrictions. Not only that, but the Chinese Communist Party announced a sweeping prohibition on bitcoin mining earlier this year. The Chinese government’s decision to prohibit cryptocurrency mining has resulted in miners turning off their machines and fleeing the country in search of friendlier jurisdictions. The majority of them emigrated to America.
The United States accounted for just 16.8% of bitcoin’s hash rate in April, indicating that the market share of the United States has increased by 105%. As interest in cryptocurrency mining in the United States grows, sales of ASIC mining rigs have risen dramatically. Bitmain has reached an agreement with New York-based bitcoin miner Bit Digital to deliver 10,000 Antminer devices.
In a similar way, Kazakhstan and Russia have seen their shares of the worldwide crypto mining market rise by 120% and 61% in the same period.
Moreover, the global hash rate recovered 20% within July and August. The hashing power has almost recovered completely, according to CCAF’s digital assets lead Michel Rauchs, with miners establishing shop outside of China. Even more fascinating is the fact that, according to pundits, the migration of miners from China has been a good thing for bitcoin because it has helped to make the network more decentralized and safe.