The U.S. has emerged as the leader in bitcoin's hashtray share

The U.S. has emerged as the leader in bitcoin's hashtray share

The United States has displaced China as the leader in bitcoin network computing capacity. Since May 2021, the U.S. share of the total hashtag has risen from 17.8% to 35.4% in August, data from the University of Cambridge's Center for Alternative Finance (CCAF) shows.

Amid a mass exodus of miners from the PRC, triggered by the crackdown on the industry launched in May, some other jurisdictions also increased their hashretail shares over the period.

In Kazakhstan, it rose from 7.4% to 18.1%, and in Canada from 4.7% to 9.6%.

These countries, along with the U.S., were cited by experts as the main destinations for the migration of Chinese cryptocurrency mining capacity.

Russia's share increased to 11.2% from 7.2% in May.

According to the CCAF, China lost its dominance in bitcoin mining back in March 2021, when its hash rate was less than half of the total for the first time.

In June, MicroStrategy CEO Michael Saylor, commenting on China's crackdown on the industry, called it a "trillion dollar mistake." He predicted that Beijing's measures would benefit North American miners.

Analysts estimated that in the third quarter, eight U.S.-listed miners alone accounted for 7.5 percent of bitcoins received as block rewards. Compared to the April-June period as a whole, they increased production by 82%, while Marathon had a 91% increase.

Recall that in September, the People's Bank of China, together with nine agencies, issued a statement classifying cryptocurrency transactions as illegal financial activity.

After that, online commerce giant Alibaba announced a ban on sales of cryptocurrency mining devices on its platform.

Bitmain, the largest producer of mining equipment, decided to stop selling it to Chinese customers.

China's relevant agencies have begun to explore the possibility of prosecuting crypto trading and mining.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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