After years of repression by the Chinese government, many of the world’s biggest bitcoin miners have moved elsewhere.
According to the latest Cambridge Bitcoin Electricity Consumption Index (CBECI), the United States now holds a leading share of the global Bitcoin hashrate.
Hashrate is a metric used to measure the overall level of computer power used to mine cryptocurrencies around the world.
In September 2020 it was estimated that China accounts for up to 75 percent of the global hashrate. That figure dropped to 38 percent in June 2021. after government repression.
Now data published by BTC.com, Poolin, ViaBTC and Foundry shows that the hashrate for the region has dropped to almost zero.
With a 35.4 percent share of the global hashrate, the US is the new leader in crypto mining. The country’s share of the BTC hashrate has more than doubled since April 2021, with a profound impact on the stability of the cryptocurrency network.
Cointree CEO Shane Stevenson said China’s control could actually strengthen the network in the long run.
“Before the ban, one of the weakest attack vectors on Bitcoin was that so much of the mining power was concentrated in China, making a 51% attack more possible,” he explained.
Mr Stevenson suggested that China’s recent crackdown on cryptocurrencies may have played a role in recent spikes in bitcoin’s price, with savvy investors recognizing the benefit of the crackdown.
“In the short term, we don’t see much of a price impact as most of the risk from the China ban was priced in when China banned crypto the first three times.” At this point, investors either see it as an empty threat or, more likely, have already factored in that outcome,” he said.
After the United States, Kazakhstan ranked second with 18.1%, while Russia accounted for 11% of the global hashrate. Both countries doubled their market share in parallel with China’s decline.
Kraken Australia managing director Jonathan Miller said the rise of the United States when it comes to bitcoin mining is hardly a surprise given the ongoing crackdown by the Chinese government.
“It was expected that migration would occur, especially to places where renewable energy is cheap and abundant,” he said.
Given that many miners in North America rely on hydroelectric power, Mr. Miller suggested that the change would improve the overall energy consumption and carbon footprint of the BTC blockchain.
“The US digital asset industry is likely to benefit from this boom by attracting more talent and investment, leading to more jobs, business, income and tax revenue,” he predicted.
Mr Miller said if the same conditions could be replicated in Australia, the region could reap many of those same economic benefits.
Compared to the US hashrate of 35.4 percent, Australia’s hashrate is a paltry 0.19 percent.
“There’s a big, missed opportunity here for us, but it’s not too late to invest in more renewable energy and increase our own share of the BTC mining pie,” he said.
