After China cracked down on bitcoin mining (BTC) earlier this year, the United States became the largest bitcoin mining hub, followed by Kazakhstan and Russia, researchers at Cambridge University have found.
The US becomes the largest bitcoin mining center after the migration of miners in China
With a global hash rate (or network computing power) of 35.4% at the end of August, the US now has the highest bitcoin hash rate in the world, said Michel Rauchs, Head of Technical Assets Number at the Cambridge Center for Alternative Finance (CCAF ), wrote in a blog post posted on the University of Cambridge website. However, they stress that “any model is an incomplete representation of reality based on certain assumptions, some of which may be controversial”.
In both cases, the result, based on data from the university’s Bitcoin Power Consumption Index, also shows that other countries, including Kazakhstan, Russia, Ireland and Canada, have increased their respective shares at the expense of China.
The author says the updated data confirms the history of the previous update (as of late April) and shows that the US, Kazakhstan and Russia have gained market share before the crackdown in China.
“The immediate impact of the government-imposed crypto mining ban in China was a 38% decline in global network hash rate by June 2021 – which is China’s pre-enforcement hash rate, suggesting that Chinese miners have ceased operations at the same time. ”Post said.
It added that “alleged miners” in China are currently inefficient, up from a high of 75.53% of global bitcoin mining in September 2019.
The fourth largest hashrate market share is Canada (9.55%), followed by Ireland (4.68%), Malaysia (4.59%), Germany (4.48%), Iran (3.11%) and Norway ( 0.58%). “A number of countries followed,” added Rauchs, adding that the effect of the Chinese ban was “an increase in the geographic distribution of hashrates around the world.”
However, Rauchs noted that the most likely reason for Germany and Ireland to be on the list is that some miners may be using virtual private networks (VPNs) or proxy servers as there is “little or no evidence” of large-scale mining activity there.
VPNs and proxy servers are tools that can be used to route traffic through other countries, effectively obscuring the actual location of the miners. However, the article doesn’t state whether some miners who use servers in other countries are actually based in China.
In addition to the top countries for bitcoin mining listed in the blog post, data from the Bitcoin Electricity Consumption Index was also used to create an up-to-date bitcoin mining map that detailed the hash rate of bitcoin in every country in the world.
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