China returns as the top 2 Bitcoin mining hub despite the cryptocurrency ban

China returns as the top 2 Bitcoin mining hub despite the cryptocurrency ban – Mail Bonus

The Chinese government has failed to repeal cryptocurrencies as part of its cryptocurrency ban last year, as China has re-emerged as one of the world’s largest Bitcoin (BTC) mining centers, according to a new report.

China became the second largest Bitcoin hash provider since January 2022, months after the government banned all cryptocurrencies in the country, according to the latest update from the Cambridge Bitcoin Electricity Consumption Index (CBECI) shared with Cointelegraph on Tuesday.

Bitcoin miners in China accounted for 21.1% of the total distribution of BTC mined carcasses worldwide as of early 2022, after only the United States, which produced 37.8% of the total carcass percentage in January, according to the data.

China was once the largest Bitcoin mining country in the world, with a local BTC hash rate of more than 75% in 2019. The hash rate then dropped to 0% in July and August 2021, following a series of land closures.

Despite the cryptocurrency ban in September 2021, the hash rate rose to 22.3% in that month and did not fall below 18% during the analysis period.

Development of the share of hashes in the country. Source: CBECI

CBECI project manager Alexander Neumueller told the Cointelegraph that the new data is enough to conclude that Bitcoin mining is still ongoing in China, stating:

“Our data, based on experience, confirms the insider industry’s assertion that Bitcoin mining is still ongoing within the country. Although China’s mining is far from previous heights, the country still appears to house about one-fifth of the total hash rate.

Russia is one of the three largest miners

The latest CBECI update also indicates a slight reduction in the share of hashish in Kazakhstan, the third largest BTC mining center in the world. The share of BTC hashes in Kazakhstan fell from 18% in August to 13.2% in January.

The CBECI data also show that miners now process up to 9% of the global BTC hash rate in unspecified locations. Canada and Russia are the following major mining centers, with 6.5% and 4.7% respectively.

In addition to dropping out of the three largest countries with a BTC hash rate, Russia also saw its actual hash rate drop from 13.6 EH / s in August to 8.6 EH / s in January.

Georgia, Texas and Kentucky lead BTC hash production rates in the United States

The new CBECI update provides more insight into the hashrate distribution of the largest Bitcoin mining market at the state level.

Related: Bitcoin network hash rate reached new record amid price fluctuations

The data show that Georgia, Texas and Kentucky are the three largest states in terms of hash rates, with 32%, 11.2% and 10.9%, respectively. All three states combined account for more than half of the total hashish share in the United States.

Prominent mining activity is also found in states such as New York, California, North Carolina and Washington, the data suggest.

Methodology: CBECI uses data from four mining pools

CBECI is published under the umbrella of the Cambridge Digital Assets Program, a research campaign hosted by the Cambridge Center for Alternative Finance.

The report is based on data obtained in collaboration with four major mining pools, BTC.com, Poolin, ViaBTC and Foundry. According to the CBECI website, the sample size for the analyzed mining pot data has varied between 32% and 38% of the total hash ratio of Bitcoin since the issuance of the mining card in 2019.

“We are constantly looking for ways to improve our data to increase the reliability of our assessment. The best way for us to do this is to receive more mining pools that contribute, so we want to encourage other mining pools to reach out and participate, “said the CBECI project manager.