The Centre for Alternative Finance at the University of Cambridge has revealed that Bitcoin mining in China continues despite the strict ban imposed by the government since mid-2021.
As of January of this year, the Asian nation remained the second country with the largest share of computing power in the Bitcoin network, according to the latest data presented by the Centre for Alternative Finance at the University of Cambridge.
An update to the Bitcoin Electricity Consumption Index, dated January of this year, has revealed that China held 39,6% of Bitcoin's hash rate to date. This means that cryptocurrency miners have reconnected their mining equipment to operate in the country, despite the strict restrictions that the government has imposed on the crypto industry since the middle of last year.
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China, which was once the leading Bitcoin power with more than 90% of the network's hash rate within its territory, ceded power to the United States when authorities began to attack miners, forcing them to close their operations and migrate from the country in search of new jurisdictions friendly to this activity.
The Chinese government had even threatened with jail and exorbitant fines those who engaged in mining crypto assets with the country's resources.
Bitcoin Hash Rate Distribution Around the World
The offensive implemented by the Chinese authorities against Bitcoin miners caused their mass exodus. Many of The miners of this cryptocurrency have found refuge in the United States, within states like Wyoming and Texas, which now lead this crypto activity.
According to data from the Centre for Alternative Finance at the University of Cambridge, 71% of the global Bitcoin network hash rate is located in the United States, followed by China as the second country with the largest share of computing power within this blockchain.
Data from the University of Cambridge are current as of January this year.
Source: CBECI
The chart shows how Bitcoin hash power was heavily concentrated in China between 2019 and Q2020 91,1, when the network hash rate reached XNUMX% in the country. China was the biggest haven for miners at that time, who benefited from its cheap and abundant energy.
However, starting in October 2020, the Bitcoin hash rate in China began to decline, while in other regions, such as the United States and Russia, it increased.
In July last year, a month after new restrictions were imposed by the local government, Bitcoin mining appears to have disappeared from China, data from Cambridge-based CBECI shows. However, this activity re-emerged in September, showing even a significant share with 30% of Bitcoin’s hash rate located in the Asian nation.
The United States and China are followed by countries such as Kazakhstan, in third place with 24,8% of Bitcoin's hash rate; Canada, in fourth place with 12,2% and Russia, in fifth place with 8,7% of the network's computing power.
The United States is the new “China” of Bitcoin
The United States has become the new world leader in Bitcoin mining, taking the place once held by China.
Earlier this year, multiple reports placed the states of Texas, Georgia, and Wyoming as “paradises” for Bitcoin miners and cryptocurrencies, considered by many to be the new digital money. In fact, the mayor of Miami, Francis Suarez, has also been inviting Bitcoin miners to operate from his jurisdiction, offering them advantages such as cheap, accessible, and sustainable energy through nuclear sources.
According to data From the University of Cambridge, the US states with the highest concentration of Bitcoin hash rate, currently, are Georgia, in first place with 30,8% of the blockchain network's computing power; Texas, with 11,2% and Kentucky, with 10,9%.
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