US overtakes China in becoming the biggest miner of bitcoin

  • As per the data posted on Wednesday by the Cambridge Centre for Alternative Finance in the UK, the US has overthrown China in the rally of mining crypto 
  • Bitcoin is generated or mined by high-powered computers located in data centres all over the world competing to solve complicated mathematical riddles in a process that consumes a lot of electricity
  • Officials in some countries are more tolerant of bitcoin mining, even embracing it, whereas, Chinese authorities recently announced even stricter regulations for bitcoin mining and trade

According to data released on Wednesday by the Cambridge Centre for Alternative Finance in the United Kingdom, the United States has surpassed China as the world’s top bitcoin mining country. The numbers show the impact of China’s State Council, or cabinet, crackdown on bitcoin trade and mining, which decimated the business and forced miners to close shop or go overseas in late May. 

According to the statistics, China’s portion of the computing power linked to the global bitcoin network, known as the hash rate, had dropped to zero in July from 44 percent in May and as high as 75 percent in 2019.

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Miners in other parts of the world have picked up the slack, with mining rig makers shifting their focus to North America and Central Asia, and larger Chinese miners following suit, although with logistical challenges. As a result, the United States currently has the highest share of mining, accounting for 35.4 percent of worldwide hash rate as of the end of August, according to the statistics, followed by Russia and Kazakhstan. Bitcoin is generated or mined by high-powered computers located in data centres all over the world competing to solve complicated mathematical riddles in a process that consumes a lot of electricity.

Because of Russia’s cheap energy costs and cold environment, some firms were able to profit from bitcoin’s rising values early this year by using surplus electricity, but there are mounting worries about illicit mining. Igor Kobzev, the governor of Russia’s Irkutsk region, blamed underground cryptocurrency mining for an avalanche-like increase of energy rates in a letter to the government in Moscow in late September. 

The issue is aggravated by the Chinese authorities’ mining restriction and the evacuation of a large amount of equipment to the Irkutsk area, Kobzev said in the letter, according to a storey published by the Vedomosti daily on Wednesday.

Officials in some countries are more tolerant of bitcoin mining, even embracing it, whereas Chinese authorities recently announced even stricter regulations for bitcoin mining and trade. After the latest crackdown, a spokesperson for mining rig maker Ebang International Holdings mentioned, the current priority is expediting the building of compliant mining farms in North America and Europe. 

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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