The United States took over from China and became the world’s new Bitcoin (PTC) mining hub. Data released Wednesday (13) by the Center for Alternative Finance at the University of Cambridge shows that the country is already responsible for the global hash rate in cryptocurrency mining.
New data reveals that Beijing has been able to expel most Bitcoin miners from the country as barriers to the cryptocurrency market grow. Thus, with a completely opposite policy, the United States succeeded in attracting these companies by providing cheap electricity and subsidies.
The United States already owns 35.4% of Bitcoin
According to the Bitcoin Mining Map of the Cambridge University Center for Alternative Finance, the latest data (as of July 2021) simply calculated China’s share in the global hash rate. Meanwhile, the United States has doubled its percentage.
In September 2019, China dominated cryptocurrency mining, accounting for 75% of the global hash rate, the highest percentage ever recorded. However, this stock fell throughout 2020 and 2021.
In May of this year, the country was still at the forefront of the mining map, but with a 44% share. Within a few months, the miners seemed to have completely abandoned China, which accounted for 0% of the global hash rate in July.
America quickly rose to number one. In the same month, the country already accounted for 35.4% of cryptocurrency mining, followed by Kazakhstan and Russia, with 18.1% and 11.2%, respectively. As new data indicates July, the U.S. percentage is expected to rise further throughout 2021.
Bitcoin miners are attracted to cheap electricity
Bitcoin mining requires high-powered computers to compete 24 hours a day to solve complex mathematical processes to maintain a cryptocurrency network. Due to the high energy consumption of the process, miners are always looking for cheap electricity to maximize their profits.
As a result, China became the largest cryptocurrency mining hub, supplying low-cost energy generated mainly by coal plants. Now, these miners are returning to countries that can offer the same profit potential.
In the United States, almost all bankrupt fossil power plants are being bought and restarted by bitcoin miners. Cheap electricity is sufficient by burning coal in Kazakhstan and Russia.
Said a representative of mining platform maker Epong International Holdings Reuters In the wake of the recent Chinese repression, the company’s focus has shifted to “building compatible mining farms in North America and Europe.”
“As a veteran who saw the birth of industry in China, I feel the situation today is deplorable,” said Mao Shihang, founder of F2Pool and co-founder of Kobo, which was once the world’s largest bitcoin mining pool. Digital property of the same name and located in Singapore. “China is losing its share of the hash rate … the industrial pole is now shifting to the United States,” the executive said.
With information: Reuters
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