The U.S. has become the world’s leader in bitcoin mining following the renewed crackdown on the industry in China, the Cambridge Centre for Alternative Finance (CCAF) said.
- Kazakhstan and Russia followed the U.S. with shares of 18.1% and 11%, respectively, up from 8.2% and 6.8% in April, according to the CCAF, which is part of the Cambridge Judge Business School.
- China’s share has “effectively dropped to zero,” according to the CCAF, following the government-mandated ban on crypto mining in the country.
- While the immediate effect of China’s crackdown was a 38% decline in the global hashrate in June, there was a 20% rebound in July and August, suggesting that Chinese bitcoin mining operations had successfully redeployed their equipment overseas.
- Where China’s dominance of the bitcoin mining industry peaked at over 75% in September 2019, the immediate trend suggests there will be no one clear winner. The crackdown has driven firms to see the need to spread their operations around rather than centralizing in one location.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.