Bitcoin (BTC) mining was not a rosy even before the Chinese authorities intensified their crackdown on the sector in May.
Cambridge Center for Alternative Finance (CCAF) study indicates China’s share of mining operations decreased from 75.5 percent in September 2019 to 46 percent in April 2021.
As a result, BTC mining has become more geographically dispersed, as Bitcoin’s documentation acknowledges. Encryption analytics company explained:
“Bitcoin mining is spreading geographically – China now has less than 50% of all degrees of decentralization, and the United States is the biggest beneficiary. Like the open Internet, the transfer of wealth from east to west.”
Therefore, the United States has become the largest beneficiary, and BTC’s mining industry appears to be moving from east to west.
The CCAF study reiterated these views, revealing that the share of U.S. hashrat rose to 16.8 percent from just over 4 percent. Other beneficiaries were Kazakhstan, Russia and Iran.
The hashrate value is used to measure the processing power of the BTC network. It allows computers to handle and resolve problems that allow transactions to be accepted and confirmed over a network.
Bitcoin’s hashrate fell 52.5% after the Chinese ban
By to the chain measurement service provider CryptoCompare:
“Following the Chinese ban, BTC’s diversification rate decreased from 52.5% to 181.61 million TH / s on 13 May to 86.19 million TH / s on 2 July. These levels have not been seen since 2019, when the average diversification rate was 90, 45 million TH / s. “
July 14, Anhui, East China Province, fire the latest area will stop all encryption mining, citing an acute power shortage.
Some cryptographic analysts used to be recognized that BTC’s mining operations may become more profitable and more readily available under the Chinese ban and the United States appears to be benefiting from this development.
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