After a crackdown in China virtually ended the activity in the previous birthplace of the business, the United States has become the world’s epicenter for Bitcoin (BTC) mining.
According to a Cambridge Centre for Alternative Finance report released on Wednesday, America accounted for 35.4 percent of the worldwide hash rate, a measure of computer power needed to extract the digital currency, at the end of August. This is more than double the amount of activity witnessed in April.
China’s attempt to pare down the business in order to reduce financial risk has fueled the rise in the country’s relative stake. The Asian nation was the basis for the biggest miners in the early days of Bitcoin‘s 2009 creation, tapping upon cheap energy from coal and hydro plants.
Beijing’s stepped-up attempts to rein in the cryptocurrency industry, first revealed in May, are already paying off. According to Cambridge researchers, China’s observed proportion in Bitcoin mining has virtually reached zero. This is down from a peak of 75% in September 2019, when Cambridge began collecting data. It’s also a significant drop from the 46 percent recorded in April of this year.
There’s a good chance that clandestine mining is still going on in China, but it’s being done over virtual private networks that make the computers appear to be in another nation. Recent surges in the hash rate in Ireland and Germany, according to a Cambridge study, are most likely the result of miners using VPNs or proxy servers.
Bitcoin Miners Are Fleeing China In Global Race For Electricity
Miners are looking for low-cost electricity and friendly governments to help fuel the virtual currency’s recent surge to new highs. The coin has increased in value by more than 370 percent in the last year, trading at approximately $54,650 with a market cap of around $1 trillion.
In August, Kazakhstan’s part of the hash rate increased to 18.1 percent, up from 8.2 percent in April, while Russia’s share increased to 11 percent, up from 6.8 percent in the same time.
The researchers at the institution, which is part of the University of Cambridge’s Cambridge Judge Business School, collect data on mining operators’ IP addresses from mining pools such as BTC.com, Poolin, ViaBTC, and Foundry.