After the United States, China is back to the top spot in crypto mining

After the United States, China is back to the top spot in crypto mining ...

Miners were exodus from China in 2021, according to new analysis from theCambridge Centre for Alternative Finance (CCAF) showing that Chinese miners did not disappear many still operate, although they were entrusted to it.

China has emerged as the world''s second largest mining hub. Bitcoin mining sparked speculation last July, two months after a ban on mining went into effect, and the industry quickly roared back to life September 2021 January 2022, when China constituted 20% of the total hash rate, referring to the cost of computing power per second that the Bitcoin network has generated in the last 24 hours.

China claimed 2.23% of Bitcoin''s hash rate by September 2021, while the United States claimed the highest place at 27.7%.

According to the CCAF study, "significant underground mining activity has sparked" in China. "Access to off-grid electricity and geographically scattered small-scale operations are among the major means used by underground miners to hide their operations against authorities and bypass the ban." "It takes time to find existing or build new non-traceable hosting facilities at that scale," the CCAF said. "It''s probable that a non-trivial part of Chinese miners quickly adapted to the fresh circumstances

"Although the ban has begun, and time has passed, underground miners appear to be more confident and pleased with local proxy services," it said.

While China has regained its dominance in global Bitcoin mining, others have dropped in place. Kazakhstan, once the country''s second largest contributor to the mining hash rate, increased its global hashrate to 13.22% this year.

The United States, however, has strengthened its position as the top miner, and has now seen the highest increase in hashrate. More than half of mining in the United States is concentrated in three districts: Georgia (30.76%), Texas (11.22%), and Kentucky (10.93%), driven mostly by cheap electricity, growing housing stocks, and pro-mining legislation. Overall,America''s installed capacity increased from 42.74 EH/s last August to 70.97 EH/s earlier this January.

"The geographical mining landscape has once again shifted substantially, with the United States now cementing its dominant position by a large margin, while other countries are only modestly increasing their capacity," he said.

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