Recent statistics show that the United States has risen past China to become the world’s largest source of Bitcoin mining. The rise came just a couple of months after China banned the mining of cryptocurrencies earlier this year.
At the end of August, the United States responded to the Cambridge Center for Alternative Finance according to the study 35.4% of world mining capacity (hash rate). It measures how much computing power computers use to extract. Back in April, the US accounted for 17 percent.
The growth of the relative share of the US has been accelerated by China’s efforts to curb the cryptocurrency market. According to the Financial Times, China has justified the ban on mining cryptocurrencies on economic and environmental concerns.
In the early days of Bitcoin in 2009, China was the base for the largest miners who took advantage of cheap electricity from coal and hydropower plants.
China’s announced efforts in May to curb the cryptocurrency market appear to be working. Cambridge researchers say China’s share of Bitcoin mining is almost zero.
At its peak, China accounted for 75 percent in September 2019. In April this year, the share was 46 percent.
China is set to launch its own digital currency, which is set to be tested at the Beijing Winter Olympics in February 2022, the Financial Times says.
Bloomberg estimates that probably in China, the extraction of bitcoins is still secret, but it is routed through VPN connections, leaving computers appearing to operate in another country.
The recent increase in mining capacity in Ireland and Germany is likely to be the result of VPN connections or proxy servers used by miners, the Cambridge study estimates.
Bitcoin miners are looking for cheap electricity and positive governments to accelerate the virtual currency trend. According to the Financial Times, bitcoins are mined in an average of 900 days.
According to Bloomberg, Kazakhstan accounted for 18.1 percent of mining power in August, up from 8.2 percent in April. During the same period, Russia’s share increased from 6.8 percent to 11 percent.
Source: Tivi by www.tivi.fi.
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