Report: Chinese Bitcoin miners controlled 66% of the global hash rate
Bitcoin miners in China are given that controlled two-thirds of the network’s processing power “hash rate” – a measure of the power of computers hooked up to the Bitcoin network that dictates their ability to produce new coins.
A Bitcoin mining company in China
Chinese miners handle 66% of global hash rate
On Dec 11, CoinShares, a digital asset management firm reported that Chinese miners control 66% of the global hash rate, which represents a 6% increase from July. Especially, having more than half of it is kept by a single province, Sichuan with 54%.
Currently, the second-largest world economy is producing the biggest share of BTC since CoinShares started monitoring its hash rate in 2 years ago. Chris Bendiksen, the firm’s head of research shared that the gains may be due to their greater deployment of more advanced mining gear.
According to that along with Sichuan, the most significant crypto mining hubs are in China’s Yunnan, Xinjiang, Inner Mongolia provinces. Moreover, CoinShares also added that out of the remaining 34% of [global] miners, they estimate that 31% is evenly split between Washington, New York, British Columbia, Alberta, Quebec, Newfoundland and Labrador, Iceland, Norway, Sweden, the Siberian Federal District of Russia, Kazakhstan, Georgia, and Iran.
Bitcoin mining was removed
Early last month, Bitcoin mining was removed from the list of industries that China wants to reject, which basically confirmed that the country plans to capitalize on the mushrooming growth of its mining businesses.
Although it got many troubles, Chinese giants such as Bitmain and Canaan still continue to reign supreme with state-of-the-art equipment. As reported, Jihan Wu, the person who now at the helm of Bitmain after ousting the company’s co-founder Micree Zhan, hopes to return his company’s glory by deploying new sales strategy and protecting their users against volatility.
Besides, Bendiksen said that this is beneficial to the mining industry in China “if you are the first to increase your proportion of the hash rate, and you can do that before your competitors, that’s generally good”. Particularly, the three biggest Bitcoin mining pools: Poolin, F2Pool, BTC.com are also run from China.
The country control over Bitcoin mining caused concern
The fact that the Chinese authoritarian government has so much control over Bitcoin mining is still one of the main concerns for the cryptocurrency industry.
That means some other countries are competing to remove China’s share in the Bitcoin mining market. For instance, Dmitry Marinichev, Russian internet ombudsman, is building a gargantuan mining farm with aiming to steal China’s mining crown. Billionaire Peter Thiel also came up with a similar plan by investing a cool $50 mln in a Texas-based mining company.
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