China hosts 21% of global Bitcoin hash rates despite the ban by the Chinese government last year.
According to a new report, the Chinese government has not been able to shut down cryptocurrency operations last year. Instead, China has reemerged as one world’s largest Bitcoin ( BTC) mining centers.
According to the most recent update of the Cambridge Bitcoin Electricity Consumption Index, (CBECI), China was the second-largest provider of Bitcoin hash rates as of January 2022. This comes months after the Chinese government had banned all crypto operations within the country.
According to data, Bitcoin miners in China made up 21.1% of global BTC mining hashrate distribution as of early 2022. This is a significant increase over the 37.8% produced by the United States.
China used to be the largest Bitcoin mining country in the world, accounting for 75% of the global hash rate power in 2019. After a series of crypto mining farm shut downs, the hash rate dropped to 0% in July 2021.
Despite the September 2021 crypto ban, the hashrate share jumped to 22.3% in that month and did NOT drop below 18% during the period under review.
Alexander Neumueller, CBECI’s project leader, told Cointelegraph that new data was sufficient to conclude that Bitcoin mining in China is still alive.
“Our data empirically supports the claims made by industry insiders that Bitcoin mining continues in China.” Although mining in China has fallen to a low level, it still appears to have about one-fifth the total hash rate.
Russia is no longer among the three largest miners
CBECI’s latest update indicates a slight decline in hash rate share for Kazakhstan, which is the third-largest BTC mining center in the world. The BTC share in Kazakhstan fell from 18% in August, to 13.2% in January.
CBECI data also indicates that miners are now mining as much as 9 percent of the global BTC haveh rate in unspecified locations. Canada and Russia account for 6.5%, and 4.7% respectively, of the world’s major mining hubs.
Russia was also dropped out of the top three countries in BTC hashrate power. Its actual hash rate fell from 13.6 EH/s to 8.6 EH/s between August and January.
BTC hashrate production is led by Texas, Georgia, and Kentucky in the US
The CBECI update gives more details about the distribution of hashrate at the state level in the largest Bitcoin mining market.
Similar: Bitcoin network’s hash rate hit an all-time high amid volatility in the market
According to data, Texas, Georgia and Kentucky are the three largest states by hash rate. They account for 32%, 11.2%, and 10.9% respectively. The combined hash rate of all three states is more than half the total in the United States.
The data indicates that there is significant mining activity in states such as Washington, California, North Carolina, North Carolina, and New York.
Methodology: CBECI draws data from four mining areas
The CBECI is published under the auspices of the Cambridge Digital Assets Programme. This research initiative hosts the Cambridge Centre for Alternative Finance.
This report was compiled from data collected in collaboration with four large mining pools: BTC.com/poolin, ViaBTC, ViaBTC, and Foundry. The CBECI website states that the size of the sample for the analyzed mining pool data has changed between 32% to 38% Bitcoin’s total hashrate since the publication of the mining map in 2019.
“We are always looking for ways to improve our data to increase our reliability of our estimates. “We believe that the best way to achieve this goal is to invite additional mining pools to contribute, so we encourage other mining pools and to get involved,” said the CBECI project leader.