The United States has taken the leading position in bitcoin mining following a crackdown on mining operations in China, a bitcoin electricity consumption index (cbeci) data update at the center for alternative finance shows. cambridge.
by michel rauchs, head of digital assets at ccaf
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The latest update to the Cambridge Bitcoin Electricity Consumption Index (CBECI) has confirmed the impact of China’s bitcoin mining crackdown, showing that the leading share of the global bitcoin network’s hashrate it is now in the united states, followed by kazakhstan and russian federation.
This new data (through the end of August 2021) shows us. federation with 11% (compared to 6.8%). this confirms the hashrate trajectory identified in the last update (up to April 2021) which showed that those three countries were already gaining market share before the crackdown in china.
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The immediate effect of the government-imposed ban on crypto mining in China was a 38% drop in global network hashrate in June 2021, roughly corresponding to the proportion of China’s hashrate before the crackdown, suggesting that Chinese miners ceased operations simultaneously. New data reported by partner mining pools btc.com, poolin, viabtc and foundry confirms this observation: declared mining operations in mainland china have effectively dropped to zero, from a high of 75.53% of total bitcoin mining in the world in September 2019 when this data was first recorded.
That initial 38% drop in global hashrate in June was partially offset by a 20% “recovery” during July and August, suggesting that some Chinese mining rigs have successfully redeployed overseas. furthermore, in early October, the hashrate trajectory indicates that all, or almost all, of that June decline will be fully recovered soon. If the August data updates are any indication of the future, the recovery is likely to be more predominantly distributed among the biggest equity gainers: the US, Kazakhstan and the Russian Federation.
Out of the top three, the next largest hashrate percentages are Canada (9.55%), Ireland (4.68%), Malaysia (4.59%), Germany (4.48%), Iran (3.11%) and Norway (0.58%). , followed by a long tail of countries. The effect of the Chinese crackdown is a greater geographical distribution of hashrate around the world, which can be seen as a positive development for the network security and decentralized principles of bitcoin.
it is worth noting that the actions of ireland and germany are likely due to a growing number of miners siphoning through those countries via vpns or proxy servers, rather than increased mining activity from which there are little or no evidence.
The next cbeci update will show if the recovery in the global hashrate has continued on the same path and where that hashrate is still being implemented. In addition to regular updates to the mining map and the recent addition of a cumulative total to the Grid Energy Demand Index, further functional updates to cbeci are in the works and are expected to go live once the methodology has been validated. and the data.
The research team is working to examine further updates to the tool and the underlying datasets, and is actively seeking to add more mining pools to the list of data contributors to provide as complete a sample as possible; any interested group should contact through the cbeci website.
you can contact the author at [email protected]
note: this project is part of a larger research stream on climate aspects of digital assets. Other research streams from the ccaf digital assets program include distributed financial market infrastructure (dfmi) configurations and processes, the collection of blockchain networks and related application ecosystems, as well as emerging monetary systems such as stablecoins, central bank digital currencies (cbdcs), and other digital tokens.
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