USA overtake China as the largest Bitcoin mining center after the ban on Beijing

The USA overtaken China as the world's largest source of Bitcoin mining, two months after Beijing banned the crypto mining this year, as revealed new data.

China's share of the global hashrate - the computing power required to manufacture Bitcoin - fell from 44 percent to zero between May and July, as shown on Wednesday by Cambridge Center for Alternative Finance. In 2019, three quarters of the global hash rate accounted for the country.

The proportion of the USA in the global cutting shot rose from 17 percent in April to 35 percent in August, while Kazakhstan rose 10 percent to 18 percent in the same period.

China's State Councilor or Cabinet banned mining and trade in cryptocurrencies in May, citing ecological and financial concerns. The decision led to an exodus of miners looking for cheap energy and crypto -friendly politicians.

China's Bitcoin mining ban led to the "big mining migration", said Sam Tabar, Chief Strategy Officer at Bit Digital, a Bitcoin-Miner based in New York. The company has hired its activities in China, which it had since hired it since October 2020.

Michel Rauchs, head of digital assets with the closely observed tracker in Cambridge, found that "the impact of the Chinese approach is an increased geographical distribution of the hashrate all over the world", and added that this could be seen as "a positive development for network security and the".

miner outside of China enjoyed a digital coin pre -amusement in the months after the ban on Chinese competitors tried to move their businesses.

Beijing has continued since then and described all crypto -related activities as "illegal" last month and extended his ban on foreign operators.

china introduces its own digital currency, which the authorities want to test in Beijing next February.

"The shutdown in China was great for industry and the US miner," said Fred Thiel, CEO of Marathon Digital Holdings, a crypto mining company based in Las Vegas.

"Overnight fewer players were behind the same finite number of coins," added Thiel.

On average, 900 Bitcoin are broken down by machines every day that fight for the solution of complex mathematical arithmetic tasks that unlock new digital coins. Between July and September, Marathon Digital Holdings produced 1,252.4 coins, 91 percent more than in the previous quarter.

However,

Thiel said that the competition had intensified when Chinese miners settled at new locations, especially in Kazakhstan. "We are back where we were before the shutdown, so I expect the situation to stabilize," he said.

But the scattered miners were also confronted with roadblocks in their new houses, which underlines the challenges for digital currency companies in the identification of predictable political surroundings, since the concerns about the financial supervision of the sector increase.

Didar Bekbauov, co-founder of Xive, a cryptocurrency mining platform based in Almaty, said that "Kazakhstan received many mining machines immediately after the ban, mainly from Chinese miners who wanted to resume operation as quickly as possible".

The authorities have held the crypto hunters living in exile for the latest energy bottlenecks and beaten miners with surcharges for electricity consumption. The Kazakh government has also adopted a cryptocurrency mining tax that will come into force in 2022.