Key Takeaways:
- After the major announcement by Binance to put a halt on its services in China, another major news comes as the USA overtakes China in Bitcoin mining.
- America’s Bitcoin mining accounting increased to ~36% by the end of August which is double of that of in April.
The end of August witnessed America accounting for 35.4% of the global hash rate (hash rate is the speed at which a cryptocurrency miner operates. Specifically, it is the speed of the computing device used by the miner to develop the unit of cryptocurrency.) According to a Cambridge Centre for Alternative Finance study published on Wednesday. That’s more than double the activity seen in April.
After a crackdown in China largely ended the practice in the former cradle of the industry, The United States has become the world’s epicentre for Bitcoin mining. China’s move to cut down the industry in order to control financial risk has fueled the rise in the country’s relative stake. The Asian nation was the foundation for the biggest miners in the early days of Bitcoin’s 2009 birth, tapping upon cheap electricity from coal and hydro plants.
There’s a high possibility that covert mining is still going on in China, but it’s being done through virtual private networks that make it look like the computer set-ups are in another country. Recent increases in the hash rate in Ireland and Germany are likely the result of miners using VPNs or proxy servers, according to Cambridge research.
The below short video clearly represent the effects of the Chinese mining crackdown:
Bitcoin miners are fleeing China in a global race for electric power
After the stringent regulatory crackdown, the Chinese miners are looking for low-cost electricity and receptive governments to help fuel the virtual currency’s recent surge to new highs. The coin has increased in value by more than 370 per cent in the last year, trading at roughly $54,650 with a market cap of around $1 trillion.
In August, Kazakhstan’s portion of the hash rate increased to 18.1 per cent, up from 8.2 per cent in April, while Russia’s share increased to 11 per cent, up from 6.8 per cent in the same time.
Also, read
- Binance Abandons China and Chinese Traders Amid Regulatory Crackdown
- Coinbase Joining the NFT World, Soon to Launch its NFT Platform
- Russia is not Going to Follow the Footsteps of China
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