Finance

China Emerges As Second-Largest Bitcoin Mining-Hub Despite Ban

China Emerges As Second-Largest Bitcoin Mining-Hub Despite Ban

Authored by Shawn Amick via BitcoinMagazine.com,

  • New data from Cambridge details a portrait for the global hash rate of bitcoin mining.

  • The U.S. is solidifying its position as the global leader with 37.84% of the global hash rate.

  • China surged to almost 22% following the mining ban from last year showing either a rise of covert operations or miners that have remained well-hidden throughout.

The U.S. has risen as the global dominant country housing Bitcoin hash rate while China has picked up pace to trail in second despite its ban from last year, new data from a Cambridge Center for Alternative Finance (CCAF) report shows.

Following the need for underground mining facilities in China after the ban that took place in June of 2021, covert Chinese operations have risen to 21.11% of the global hash rate, returning China to its position as a major mining hub worldwide with Sichuan (42.59%) followed by Xinjing (32.25%) the largest Chinese regional hash-rate providers.

 Kazakhstan continues to hold a respectable hash rate of 13.22%, while Canada controls 6.48% and Russia produces 4.66%.

From September 2021 to January 2022, CCAF data shows a continued rise in dominance for the U.S. leading 37.84% of the total global hash rate. The largest American hash rate providers are Georgia (30.76%), Texas (11.22%), and Kentucky (10.93%).

The last time CCAF released detailed bitcoin mining data was in October 2021, immediately following the aftermath of the Chinese ban which resulted in a shockingly steep decline in hash rate – bottoming out at 57.47 exahashes per second (EH/s) on June 27, 2021, per the report.

A quick and decisive migration took place in what seemed like an overnight exodus and by December 2021 the hash rate had risen back to previous levels, reaching 193.64 EH/s on December 21, 2021). By February 2022, a new all-time high (ATH) of 248.11 EH/s of global Bitcoin hash rate was achieved, showcasing the incredible adaptability of the bitcoin ecosystem in the face of adversity.

On the Chinese ban and sudden hash rate resurgence, CCAF noted that it may not be the case that the major hub of Chinese miners actually left at all, stating that “it is probable that a non-trivial share of Chinese miners quickly adapted to the new circumstances and continued operating covertly while hiding their tracks using foreign proxy services to deflect attention and scrutiny.”

Tyler Durden
Wed, 05/18/2022 – 14:29

Share this Story
Load More Related Articles
Load More In Finance