Over the past year, there has been a huge shift in the pecking order regarding the so-called hash rate, or computing power, of the Bitcoin (BTC) network. Where previously China was home to a vast majority of Bitcoin miners, this was abruptly ended when the Chinese government announced that it minen by cryptocurrencies forbid.
Almost all miners in China were then forced to move to other countries. The United States and Kazakhstan in particular were attractive locations for these miners.
Bitcoin mining
In 2019, an estimated 65% of all computing power was located in China. At the time, only 4.9% of these hash rate located in the United States. Due to the ban on mining in China, the computing power emanating from this country has practically fallen to zero, according to data from the Cambridge Bitcoin Electricity Consumption Index
Kazakhstan in particular saw a huge increase in the number of miners settling in the country. In August of last year, the hash rate in Kazakhstan was at least 18% of the total. However, the country is currently being provoked by great internal turmoil.
The government of Kazakhstan even completely shut down the internet a few days ago to nip the protests in the bud. This had major consequences for the miners in the country and the hash rate of the Bitcoin network in Kazakhstan.
Mining in the United States
For that reason, the US share of the hash rate suddenly became a lot bigger. It recently reached a new high of at least 35%. At the moment, the United States also still appears to be a safe haven for mining bitcoin.
Whether this will continue to be the case in the future remains to be seen. Yesterday it was announced that American lawmakers looking for answers about the net energy consumption of the Bitcoin network.
If these answers do not go down well with the American government, it cannot be ruled out that they will also take measures against the ever-growing number of miners in the country.
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