The USA crashes China as the world’s largest bitcoin miner and, following Beijing’s procedure, accounts for a third of the world’s hash rate | Currency News | Financial and business news
Bitcoin mining rigs.
LARS HAGBERG / AFP via Getty Images
The US overturned China as the world’s largest bitcoin miner, accounting for a third of the world’s hash rate, after Beijing banned all cryptocurrency transactions, data from a new report showed.
The US share of the global interest rate more than doubled from 17% in April to 35.4%, according to a report released by the Cambridge Center for Alternative Finance on Wednesday. China’s global hash rate has dropped from 44% to zero during that time.
The hash rate is an important measure of how much computing power is required to support the network and create bitcoin. It is also important for the Bitcoin security protocol that prevents any double spending of Bitcoin.
The surge in the U.S. hash rate share came after China banned all cryptocurrency transactions in September. The People’s Bank of China said virtual currencies are “not legal and should not and should not be used as currency in the market”.
In the run-up to the ban, Beijing had steadily tightened the screws for cryptocurrency operators. China ordered the shutdown of bitcoin miners operating in the country in June, citing environmental concerns. Immediately afterwards, almost half of the Bitcoin network went dark when the miners immediately began looking for where to migrate.
The general crackdown has eliminated China as a bitcoin superpower. In September 2019, the earliest data Cambridge collected, China accounted for up to 75% of the world’s hash rate thanks to an abundance of coal and hydropower plants that kept electricity prices low.
Meanwhile, Bitcoin miners outside of China see enormous growth opportunities, including in the US. October data from Foundry USA, a digital currency group, showed that 19.9% of Bitcoin’s hash rate is in New York, 18.7% in Kentucky, 17.3% in Georgia, and 14% in Texas, as for the first time reported by CNBC.