• Bye-Bye, China FUD: The United States Takes Over Bitcoin Mining

  • China’s crackdown on bitcoin and cryptocurrency mining has been a source of concern for the market this year. The country that decided to remove bitcoin mining operations from its territory caused widespread panic, dragging the market down with it. The price of bitcoin had fallen as a result of the exodus of miners from the country known as the mining capital of the world.

    It took some time, but the market gradually regained its footing. Miners had to find new locations to set up shop after being chased out of China. Mining logistics proved to be a stumbling block for the miners. However, as time passed, other parts of the world opened their doors to these miners in an effort to encourage cryptocurrency adoption. The United States, in particular, saw this as an opportunity to establish the country as the world’s new mining headquarters.

    Bitcoin Miners Are Welcome in the United States

    According to research, the United States has surpassed China as the preferred location for bitcoin mining operations. China accounted for more than half of total BTC hashrate, making it an important region for the digital asset. However, since the mining crackdown began in May, China’s share of hashrate has dropped from more than 50% to 0%.

    As a result of China’s ban on cryptocurrency and mining, other countries have seized the opportunity. Prior to the crackdown, the United States accounted for only 16.8 percent of total mining hashrate. The country now accounts for 35% of the total hashrate.

    The United States has created a favorable environment for bitcoin mining, and miners have relocated their operations in large numbers to the region. The market has now successfully distanced itself from Chinese FUD, which is known to have a negative impact on cryptocurrency prices. North America now accounts for nearly half of all hashrate in the world.

    Other Countries Are Joining In

    The United States is not the only country that has jumped at the chance to house more bitcoin miners in the region. Countries such as Kazakhstan and Russia have also offered incentives to miners to relocate to the region.

    Previously, Kazakhstan and Russia were responsible for 8.2 percent and 6.8 percent of global hashrate, respectively. That figure has now risen to 18.1 percent and 11% of the global hashrate, respectively. Both countries, along with the United States, are leading the charge in the space for hashrate recovery.

    The hashrate, which had dropped by half following the China crackdown, has risen by 156% since then. After the crackdown was fully implemented, the hashrate fell to a low of 61 EH/s in July. Since then, it has recovered to 156 EH/s.

    It’s possible that not all bitcoin miners had relocated their operations from Mainland China. According to rumors, there are still a few miners working in the area undercover. However, the hashrate from the region has declined to the point where it is no longer relevant to the market.

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