Bitcoin Hash Counting Power is Shifting from China to North America

The United States is slowly increasing its share of the bitcoin hash rate.

Recently BTC’s average arithmetic power broke through a new all-time high again, rising to 172.36 EH/s. In this frantic arms race to ramp up, one fact that should not be overlooked is that the United States is slowly increasing its share of the bitcoin hash rate, with its ambitions aimed at the traditional mining hegemon, China.

While most bitcoin (BTC) mines and mining pools are still currently located in China, there are many signs that the arithmetic is starting to shift elsewhere.

Chun Wang, co-founder of F2Pool, one of the largest bitcoin mining pools, reports that by April 2020, the Chinese side of the bitcoin hash rate will be less than half of the total computing power. He also noted that this is the first time in eight years that the pool has seen Chinese miners account for less than half of bitcoin’s computing power, and that this shift is real.

Bitcoin Hash Counting Power is Shifting from China to North America

Chun Wang republished data released by Barry Silbert of Digital Currency Group on April 22, which showed that U.S.-based bitcoin mining pool Foundry USA climbed into the top five global pools in April, accounting for 7.6 percent of the hash rate.

Silbert said, “Bitcoin hashes are rapidly shifting from China to North America.” The leading mining pool remains AntPool, run by Chinese mining hardware equipment maker Bitmain, with an 18.6 percent share of total computing power.

With Foundry USA ranked as the No. 9 global mining pool and SlushPool, another well-known overseas pool, ranked No. 10, as per data provided by btc.com today, the global battle for computing power can be quite intense.

(University of Cambridge) calculates that China’s bitcoin mining dominance will be about 65% by April 2020. the BTC mining publication Miner’s Journal notes data for January 2021, estimating that China’s share had fallen to 55% of total BTC computing power by the start of the year, with the US boosting to 11 percent.

At the end of April, China’s Beijing Municipal Bureau of Economy and Information Technology issued an “Urgent Notice on Mapping the Situation of the City’s Data Centers Involved in Cryptocurrency Mining Businesses such as Bitcoin”, which called for a sorting out of the situation related to cryptocurrency mining involving Bitcoin and other cryptocurrencies in the business carried by Beijing’s data centers.

The notice is not a ban on cryptocurrency mining, but it still raises concerns among some mining professionals. The regulatory side may set stricter rules for Chinese crypto mining operations in the future, which could further exacerbate China’s hash rate outflow.

China has also recently looked at the amount of electricity miners use in light of its own carbon emissions commitments. In late February, authorities in the Inner Mongolia Autonomous Region reportedly proposed shutting down all local mining facilities in an effort to reduce energy consumption in the region. The Inner Mongolia region accounts for about 8 percent of the global bitcoin hash rate.

In an article published on May 5, Bitcoin podcast host Marty Bent said that F2Pool’s findings confirm that the trend of hash counting power in the mining space is becoming more and more fragmented.

“It’s great to have some data from the Chinese side, which proves that the overall hash rate share is decreasing within China.”

Criticism around Bitcoin’s energy consumption and environmental impact may also diminish as more of the mining industry turns to renewable energy sources, especially in the United States, where regulations are stricter.

On May 4, a Nasdaq report showed that the U.S. state of Texas has emerged as a desirable location for bitcoin mines due to the low cost of energy there and the fact that most of it comes from renewable sources like wind and solar.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bitcoin-hash-counting-power-is-shifting-from-china-to-north-america/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-07 10:00
Next 2021-05-07 10:08

Related articles