The United States Assumes the Crown Following China’s Crackdown on Bitcoin Mining
According to the Cambridge Centre for Alternative Finance, China’s investment has practically ceased.
The United States has surpassed China as the global leader in bitcoin mining, according to the Cambridge Centre for Alternative Finance (CCAF).
The US accounted for 35.4 percent of worldwide hashrate – the total processing power used to mine bitcoin – at the end of August, more than tripling its share from 16.8 percent in April.
Kazakhstan and Russia were in second and third position, respectively, with 18.1 and 11%, up from 8.2 and 6.8% in April, according to the Cambridge Judge Business School’s CCAF.
China’s stake has “essentially vanished,” the CCAF reports, as a result of the country’s government-mandated prohibition on cryptocurrency mining.
While China’s crackdown initially decreased global hashrate by 38% in June, it recovered by 20% in July and August, indicating that Chinese bitcoin mining companies effectively redeployed their equipment.
Whereas China’s dominance in the bitcoin mining business reached at more than 75% in September 2019, the current trajectory indicates that no clear winner will emerge. As a consequence of the crackdown, businesses have been forced to recognise the need of spreading their activities rather than concentrating them in a single place.