For the first time since Bitcoin history, the United States has become the industry leader in terms of the global mining hashrate for the largest cryptocurrency, beating China which previously accounted for over 50% of Bitcoin hashrate.
New data from the Cambridge Centre for Alternative Finance indicated that the US currently houses up to 35% of all Bitcoin hashrate, which is an 18% increase from the previous level in the past months. Kazakhstan’s share of Bitcoin hashrate has also grown from 10% to 18%, followed by Russia with 11.2%.
The record today points out that most of the miners in China had migrated to the United States, even though it’s arguable that the country doesn’t have the cheapest electricity fee. However, it’s worth noting that some states in the US are offering miners favorable taxes and cheaper and cleaner electricity sources.
Why Crackdown in China is Healthy for Crypto
Over the years, the Republic of China has banned the use of cryptocurrency and mining in the country countless times. However, this year’s crackdown is the farthest they have gone in policing the crypto ban. On account of this, many exchanges and crypto businesses had to cut ties with their Chinese users, while miners migrated to other favorable regions.
Note that China always accounted for over 50% of all Bitcoin hashrate, and consequently, the overall Bitcoin hashrate was drastically affected by the incident. The good side of the crackdown is that it helped decentralized the Bitcoin hashrate even further. As seen in the new data, the previous hashrate share of China is now distributed across other countries, mostly in the United States.
China now accounts for 0% of BTC hashrate, meaning the government has missed out on possible revenue streams from the mining and crypto industry. Clearly, the US is taking advantage of the crackdown.