According to data from the Cambridge Bitcoin Electricity Consumption Index (CBECI), the United States has surpassed China to become the dominant region for Bitcoin mining globally, followed by Kazakhstan and Russia. This shift underscores the impact of China's stringent regulatory crackdown on cryptocurrency miners.
Key Findings from CBECI Data (August 2021)
- United States: Mining share surged from 16.8% (April 2021) to 35.4%
- Kazakhstan: Increased from 8.2% to 18.1%
- Russia: Grew from 6.8% to 11%
The report notes that these three countries were already experiencing steady growth before China's mining ban took effect in May 2021. Following provincial bans, China’s hash rate plummeted by 38%, accelerating other nations' market share gains.
Global Hash Rate Recovery
Despite China's mining operations dropping to zero (down from 75.53% in 2019), worldwide hash rate rebounded 20% by July–August 2021. Researchers attribute this to successful relocation of Chinese mining equipment abroad—primarily to the US, Kazakhstan, and Russia.
FAQs: Bitcoin Mining Shift
Q: Why did China ban Bitcoin mining?
A: Authorities cited energy consumption concerns and financial risk control, aligning with broader cryptocurrency restrictions.
Q: How does the US support Bitcoin miners?
A: Competitive electricity rates, deregulated states (e.g., Texas), and private power deals attract mining firms.
Q: What risks do miners face in Kazakhstan?
A: Political instability and reliance on fossil fuels pose challenges despite low energy costs.
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