The Chinese government completely banned cryptocurrencies last year, but now China is reappearing as the second largest Bitcoin in the world (BTC-USD) Miners, the United States remains the top dog, Report from The Cambridge Center for Alternative Finance (“CCAF”) was released this week.
Specifically, US Bitcoin (BTC-USD) Mining hubs account for 37.84% of the global hash rate (computing capacity measure-mining speed), followed by China (21.11%), Kazakhstan (13.22%), Canada (6.48%) and Russia (4.66%). it continues. According to the report referring to the data from September 2021 to January 2022.
Keep in mind that the total hash rate is hovering near the highest ever. This means more Bitcoin (BTC-USD) Miners are involved in transaction validation on the Proof-of-Work blockchain. This ultimately improves the security of your network.
What is behind China’s return to the top?
According to CCAF, after Beijing banned Bitcoin mining in June 2021, the total hash rate was crated and China quickly lost its dominant position as the world’s share of mining capacity fell to zero. .. Since then, much of China’s resurgence as a major mining hub can be attributed to miners’ rapid relocation of their businesses abroad (a large chunk in the United States) and “increased secret mining operations.” This “strongly suggests that important underground mining activities have been formed in this country and empirically confirms what industry insiders have long assumed,” CCAF explains. bottom.
“But the sudden resurgence raises questions that can be traced back to methodological trade-offs,” the research report said. “Resurrection at this scale within a month seems unlikely due to physical constraints. Find an existing untraceable hosting facility at that scale or buy a new hosting facility. It takes time to build. “
The process of mining Bitcoin (BTC-USD) Requires a powerful computer and consumes too much energy to be considered environmentally safe. For example, in November 2021, the Chinese government pressured state-owned enterprises to stop mining cryptography because of national concerns. Energy supply.. As a result, renewable BTC mining (using clean energy sources) has become a popular industry throughout the mining sector.
Some listed companies that have at least some focus on producing eco-friendly cryptocurrencies include: Soluna (SLNH), Greenidge Generation (Gree), Argo Blockchain (ARBK), Galaxy Digital (OTCPK: BRPHF), Sphere 3D (Any), Bit farm (BITF), Iris Energy (IREN) And Powerbridge Technologies (PBTS).
The United States dominates Bitcoin in every way:
Despite regulatory efforts on how to implement regulations in decentralized spaces, the United States remains the world’s leading Bitcoin ().BTC-USDIn addition to outperforming its peers in terms of mining hubs and hashrate growth, the report states. Looking at the distribution of US Bitcoin mining hash rates at the state level, Georgia (30.76%), Texas (11.22%) and Kentucky (10.93%) have “relatively low cost access to and available electricity”. Thanks to, it accounts for more than half of the country’s hash rate. Hosting capacity, and enactment of favorable legislation. ” CCAF added that significant mining activity was seen in New York (9.77%), California (7.9%), North Carolina (4.7%) and Washington (4.1%).
Nonetheless, crypto and risk assets are more widely avoided by speculators due to a series of macro headwinds such as rising interest rates, rising inflation, monetary tightening and lack of liquidity. Bitcoin (for the past 6 monthsBTC-USD) Dive 50%As of Friday afternoon, change hands at ~ $ 29.2K. The periodic decline of Bitcoin is Recent collapse Algorithm stablecoinTerraUST (UST-USD) And its sister token Luna (LUNA-USD). See an analysis by SA contributor Lyn Alden Schwartzer. “Cryptocurrency crash.“”
In October 2021, the SEC’s Gary Gensler said: U.S. does not ban cryptography..