After the Chinese government restricted all crypto activities last year, the country still has 21% of the overall Bitcoin hash rate.
As to new research, the Chinese government has failed to close down cryptocurrency businesses as a section of its crypto ban last year, and China has re-emerged as one of the world’s largest Bitcoin (BTC) mining centers.
According to the recent update from the Cambridge Bitcoin Electricity Consumption Index (CBECI) released on Tuesday, China had become the second-largest Bitcoin hash rate producer in January 2022, months after the local authorities forbade all crypto activities in the state.
Based on the data, Chinese bitcoin miners generated 21.1 percent of the overall worldwide BTC mining hash rate distribution in early 2022, behind only the United States, which produced 37.8 percent of the total hash rate in January.
China was formerly the world’s greatest Bitcoin mining country, with more than 75% of the entire BTC hash rate power in 2019. Following a series of crypto mining farm shutdowns throughout the country, the hash ratio declined to 0% in July and August 2021.
Even after the crypto restriction in September 2021, the hash rate share rose to 22.3 percent in that month and never fell below 18 percent during the study period.
As per CBECI project lead Alexander Neumueller, the fresh information is necessary to indicate that bitcoin mining is still operating in China, stating:
“Our data actually validates industry insiders’ statements that Bitcoin mining occurs in the country.” Although China’s mining sector is no more at its top, it still accounts for roughly one-fifth of the global hash rate.”
Russia Drops Out Of The Top Three Largest Miners
Kazakhstan, the world’s third-largest BTC mining hub, shows a modest reduction in hash rate share, according to the latest CBECI report. Kazakhstan’s portion of the BTC hash rate decreased from 18 percent in August to 13.2% in January.
Miners are now processing up to 9% of the global BTC hash rate in unknown places, according to CBECI data. With 6.5 percent and 4.7 percent, respectively, Canada and Russia are the next two largest mining hubs.
Along with sliding out of the top three countries in terms of BTC hash rate power, Russia’s actual hash rate has fallen from 13.6 EH/s in August to 8.6 EH/s in January.
Georgia, Texas, and Kentucky Lead BTC Hash Rate Production In The US
The new CBECI update provides in-depth information on the hash rate distribution in the largest Bitcoin mining market at the national level.
Georgia, Texas, and Kentucky are the top three states in terms of hash rate, with 32 percent, 11.2 percent, and 10.9 percent, correspondingly. Collectively, these three states contribute for more than half of the country’s hash rate.
According to the data, there is significant mining activity in states such as New York, California, North Carolina, and Washington.
Methodology: CBECI Uses Data From Four Mining Pools
The Cambridge Digital Assets Programme, which is housed within the Cambridge Centre for Alternative Finance, has developed the CBECI.
The statistics for the analysis came from four large mining pools: BTC.com, Poolin, ViaBTC, and Foundry. Since the publication of the mining map in 2019, the sample size for the studied mining pool data has fluctuated between 32 percent and 38 percent of Bitcoin’s total hash rate, according to the CBECI website.
“We’re continuously searching for approach to enhance our data so that our predictions are more reliable.” “The simplest option for us to do this is to welcome new contributing mining pools,” the CBECI project lead remarked.