The US overtakes China and leads the world as the bitcoin hash rate drops to zero

For the first time, the US has overtaken China and is a leader in global crypto mining. This happens after a month-long crackdown on the cryptocurrency by the Asian giant, forcing the miners to migrate to friendlier countries.

Despite the Chinese government’s aversion to cryptocurrencies, the country has long held the lion’s share of the global bitcoin hashrate, capturing 75% of the market share in September 2019. But the massive crackdown in May resulted in miners closing their stores, and China recently ruled all cryptocurrency transactions illegal.

Part of that move is for China to experience the worst electricity shortage in its history and also pave the way for the introduction of a digital yuan (CBDC) next year.

According to the Cambridge Center for Alternative Finance, the new raids have reduced China’s market share by 60% in just a few months. Now it’s 0 again.

The source: Cambridge Alternative Finance Center

In any competition, a man’s sadness is his opponent’s joy. The US hashrate share rose from 17% in April to 35.4% in July, with Kazakhstan in second place from 8% to 18% and in third place Russia from 6.8% to 11%. Canada took fourth place with a 9.6% market share, while in April it was only 3%.

Boaz Sobrado, a fintech data analyst based in London, told CNBC, “The entire FUD of China that controls Bitcoin is now completely closed.”

The emigration of Chinese miners has created increased electricity demands for the countries that receive them. A Bitcoin transaction, including the resources required to mine the cryptocurrency and verify the transaction, can be up to 1,700 kilowatt hours (kWh).

Recently, a mining company bought a power plant in Pennsylvania, USA, to produce enough electricity for 1,800 Bitcoin miners, with plans to increase production to more than 20,000 miners by 2022.

In other crypto news this week, Intel confirmed that its first line of Arc graphics cards, Alchemist, won’t have the same mining cap as the Nvidia LHR, which opens a new door for miners.

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Khong Minh

According to AZCoin News

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