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The US Becomes the Largest Bitcoin Miner After China’s Crypto Laws

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Bitcoin mining
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The US is now the world’s hub for Bitcoin mining after the crackdown in China effectively eradicated Bitcoin mining in the former epicentre of the industry.

By the end of August, America accounted for 35.4% of the world’s hash rate, a measure of computing power for mining the digital currency. This is according to a study by Cambridge Centre for Alternative Finance published on Wednesday. This hash rate is more than double the activity experienced in April.

This surge in the country’s share is a result of China’s move to cut down the industry to regulate financial risks. In Bitcoin’s 2009 early days of inception, China was the centre for the biggest miners tapping into cheap electricity from hydro plants and coal.

Beijing’s efforts to curb cryptocurrency transactions announced in May are paying off. China’s share of Bitcoin mining has hit zero, according to Cambridge researchers. That’s down from an all-time high of 75% in September 2019 when Cambridge began collecting the data. It’s also a decrease from 46% share reached in April this year.

Still, there is a strong possibility that secret mining is happening in China, but through virtual private networks (VPNs) that make the computers seem to be operating in another country. According to the Cambridge research, recent surges in hash rates in Ireland and Germany may be a result of miners using VPNs and proxy servers.

Miners are looking for low-priced electricity and welcome governments to support the boom in the virtual currency industry that’s approaching a record high. Bitcoin has been up more than 370% in the past year, trading around $59,284 with a market capitalisation of around $1 trillion.

In Kazakhstan, the hash rate hit 18.1% in August from 8.2% reached in April, while Russian grew to 11%, from 6.8% in the same period.

Researchers at the institute collect the data on the IP addresses of miners from Poolin, ViaBTC, BTC.com, and Foundry.

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