China’s Bitcoin Mining Dominance Was Slipping Before the Crackdown Started

The Cambridge Centre for Alternative Finance (CCAF) today revealed that China’s dominance over global Bitcoin mining was slipping before most of the country’s provinces had even started to shut down mining operations earlier this year.

CCAF said a major update to the Cambridge Bitcoin Electricity Consumption Index (CBECI) suggests “that China’s share of global hashrate (the total computational power of server farms participating in Bitcoin’s consensus process) has been in significant decline for some time prior to the recent crackdown on Bitcoin mining.”

The updated CBECI “reveals that China’s share of total Bitcoin mining power declined from 75.5% in September 2019 to 46% in April 2021,” CCAF said, though it’s still the largest contributor to the cryptocurrency’s hash rate. The U.S. claimed second place by increasing its contribution to the network from 4.1% to 16.8% in the same period.

Cambridge Bitcoin Electricity Consumption Index for October 2019 to April 2021

(Image credit: Cambridge Centre for Alternative Finance)

China’s reduced contribution to Bitcoin’s hash rate could mitigate some of the concerns about losing the country’s mining operations, but 46% is still a significant chunk of the power devoted to the cryptocurrency, and it wouldn’t be surprising if it still took at least a year for the network to recover from its sudden disappearance.

Source link

Leave a Reply