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US passes China as biggest bitcoin mining hub after Beijing ban

The United States has overtaken China, long home to most of the world’s crypto mining activity, as the world’s largest source of Bitcoin mining, according to new data released Wednesday by the University of Cambridge.

China’s share of bitcoin’s global hashrate, an industry term used to describe the computational power of all miners, fell from around 44 percent in May to zero percent in July, after Beijing authorities called for a crackdown on bitcoin mining, prompting an exodus from the industry.

Reading: Overtakes china biggest bitcoin hub after

At the same time, the US share of the bitcoin hash rate rose from just 17.8% in May to 35.4% in August, an increase of more than 66%, according to data from the center Cambridge Alternative Finance.

Bitcoin mining is an energy-intensive process that produces new bitcoins while processing transactions made with the existing supply. As the supply of bitcoins grows, it becomes more energy intensive to mine new coins.

According to new data, the US has overtaken China in Bitcoin mining.

According to new data, the US has overtaken China in Bitcoin mining.
Nicolas Economou/NurPhoto via Getty Images
The US was responsible for just 4.2 percent of the world
The US was responsible for just 4.2 percent of the world’s Bitcoin mining activity in August of 2020.
EPA/JEROME FAVRE

The energy demands of mining has become a major point of criticism for the crypto, with even some of its biggest supporters like Tesla CEO Elon Musk calling out its environmental impact. Proponents, though, argue that Bitcoin miners are tapping new forms of renewable energy, including geothermal power, to drive growth.

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The new data marks a big change in the increasingly important and lucrative world of bitcoin mining.

As of August last year, the United States was responsible for just 4.2% of the world’s bitcoin mining activity, marking a year-over-year increase of more than 157%, while China dominated the sector at the time with almost 67%. of the global hash rate.

The US

The US’ share of Bitcoin’s hash rate rose from just 17.8 percent in May to 35.4 percent in August, a rise of more than 66 percent.
Andrew Rush/Pittsburgh Post-Gazette via AP

The price of Bitcoin and other cryptocurrencies skyrocketed earlier this year, with Bitcoin peaking at almost $65,000 per coin in April, spurring governments to take a hard look at the industry.

China’s state council announced a ban on cryptocurrency mining and trading in May, citing environmental concerns and risks to the country’s financial system.

The decision forced the country’s crypto miners to pack up and look elsewhere for cheap energy sources and friendlier regulations, with many landing in the US. uu.

A map of the entire world that shows every country

A map of the entire world that shows every country’s Bitcoin mining rate. According to recent data, the US is in the lead.
CBECI.org

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“The China shutdown has been great for the industry and US miners,” said Fred Thiel, CEO of Marathon Digital Holdings, a Las Vegas-based crypto mining company, according to the Financial Times.

“overnight, fewer players were chasing the same finite number of coins,” he told the outlet.

Still, the US is competing with other countries that are now trying to grab a piece of the fast-growing industry.

According to supporters of Bitcoin mining, the process would allow people to tap into new forms of renewable energy, including geothermal power.

According to supporters of Bitcoin mining, the process would allow people to tap into new forms of renewable energy, including geothermal power.
The Washington Post via Getty Im

Kazakhstan, for example, has become a Bitcoin mining heavyweight.

The country accounted for nearly 22 percent of the global bitcoin hash rate as of August, according to Cambridge data. that’s an increase from just 11.9 percent in May.

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