Bitcoin mining: the United States takes the lead

While China has banned Bitcoin and cryptocurrency mining more broadly, the industry is completely restructuring. Now, the United States is the most important country in the world in terms of mining the most famous cryptocurrency.

After the announcement of the mining ban on May 21 by Beijing, the mining sector has undergone profound changes. With in particular a relocation of mining farms from China to the country of Uncle Sam.

The United States rushes into the breach left by China

The United States rushes into the breach left by ChinaSince last May, Beijing has significantly tightened the screw around digital currencies. Whether in terms of mining or use. At the end of September, the Chinese Central Bank declared cryptocurrency transactions illegal. All platforms operating on Chinese territory are therefore requested to no longer allow the trade of any digital currency.

The action of the Chinese government last May had a considerable impact on the mining sector. With a 38% worldwide drop in the participation of miners in the BTC network. These announcements had also contributed to bring down the price of Bitcoin. Since then, mining has resumed its cruising speed. This is how much of the mining relocated to the United States.

If the grounds for prohibition invoked are the excessive decentralization of cryptocurrencies as well as their environmental impact, it would seem that China is seeking to clean up the sector in order to launch his digital yuan. A launch that could take place before the launch of the Winter Olympics scheduled in Beijing from February 4 to 20.

The evolution of Bitcoin mining in figures

A study of Cambridge University shows that in June 2019, China concentrated more than 75% of global Bitcoin mining. A position of very strong domination at the time since the second country, Russia, represented barely more than 6%. In the following months, the situation seems to have changed to the advantage of other countries.

Thus, in April 2020, Bitcoin mining in China represents only 60% of the world total. Other countries are emerging, such as the United States (8%) or Kazakhstan and Malaysia (around 5% each), while Russia is also seeing its share increase in the world market (9%). In February 2021, the trend seems to be confirmed and for the first time, China sees its weight drop below 50%. The United States then represented more than 15% of global Bitcoin mining.

On May 21, while China has just declared a ban on cryptocurrency mining, the world market is rocking. In June, the United States regained the upper hand while Kazakhstan began to impose itself as a fallback solution. At the end of August, Uncle Sam’s country already accounts for more than 35% of global BTC mining. Followed by Kazakhstan (18%), Russia (11%) and Canada (10%). Ultimately, the United States could become the majority player in Bitcoin mining in the world. Good news for the carbon impact of Bitcoin? Not certain, when we know that the American energy mix is ​​still largely dominated by fossil fuels (over 75%).

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