..

U.S. Becomes Largest Bitcoin Mining Centre After China Crackdown

Written by:
Reuters
Published on:
Oct/14/2021

HONG KONG (Reuters) - The United States has overtaken China to account for the largest share of the world's bitcoin mining, data published on Wednesday by Britain's Cambridge Centre for Alternative Finance showed.

bitcoin-sv-ad.png

The figures demonstrate the impact of a crackdown on bitcoin trading and mining launched by China's State Council, or cabinet, in late May, which devastated the industry and caused miners to shut up shop or move overseas. read more

China's share of the power of computers connected to the global bitcoin network, known as the "hash rate", had fallen to zero by July from 44% in May, and as much as 75% in 2019, the data showed.

Miners elsewhere have taken up the slack, with mining rig manufacturers shifting their attention to North America and Central Asia and larger Chinese miners moving as well, though this process is fraught with logistical difficulties. read more

As a result, the United States now accounts for the largest share of mining, some 35.4% of the global hash rate as of the end of August, followed by Kazakhstan and Russia, the data showed.

Bitcoin is created or "mined" by high-powered computers, usually at data centres in different parts of the world, which compete to solve complex mathematical puzzles in a process that makes intensive use of electricity.

Russia's low energy costs and cool climate enabled some companies using surplus electricity to benefit from bitcoin's surging prices earlier this year, but concerns are growing about illegal mining. read more

In a letter to the government in Moscow in late September, Igor Kobzev, governor of Russia's Irkutsk region, pointed to "avalanche-like growth" of energy tariffs, blaming underground cryptocurrency mining.

"(The situation) is further worsened by the ban on mining imposed by the Chinese authorities and the relocation of a significant amount of equipment to the Irkutsk region," Kobzev said in the letter, according to a report by the Vedomosti daily on Wednesday.

Authorities elsewhere are more tolerant or even welcoming of bitcoin mining, while Chinese authorities announced even tougher rules for bitcoin mining and trading last month. read more

"Our current focus is accelerating the construction of compliant mining farms in North America and Europe," a representative for mining rig maker Ebang International Holdings told Reuters after the latest crackdown. (EBON.O)

But industry players remain bruised.

"As a veteran who witnessed the industry's birth in China, I feel the situation today is lamentable," said Mao Shihang, founder of F2Pool, once the world's biggest bitcoin mining pool, and co-founder of Cobo, a Singapore-headquartered crypto asset manager and custodian.

"China is losing its share of computing power ... the industry's centre of gravity is shifting to the United States," he said, speaking before the Cambridge data was published.

Business/Financial News

£9.9 Billion Class Action Lawsuit Filed Against Binance, Kraken, Others

£9.9 Billion Class Action Lawsuit Filed Against Binance, Kraken, Others

A £9.9 billion class action lawsuit has been filed against Binance, Bittylicious, Kraken and Shapeshift.  The plaintiffs are mostly BSV Blockchain investors.

VERDICT: Peter McCormack Liable for Defamation on All Counts

VERDICT: Peter McCormack Liable for Defamation on All Counts

The judge also found that McCormack’s defamatory tweets had caused serious harm to Wright's reputation in the United Kingdom.

Odds on the JetBlue Spirit Airways Merger Getting Approval

Gambling911.com has the odds of a JetBlue Spirit Airways merger receiving approval from the U.S. government by July 2024 set at +130.

Mark Cuban Anticipates SEC to Impose 'Nightmare' Crypto Registration Rules

Mark Cuban Anticipates SEC to Impose 'Nightmare' Crypto Registration Rules

And another serial entrepreneur, Calvin Ayre, asks: "How is anyone surprised that the SEC thinks most token platforms are securities when we have published this", directing folks to an article appearing on CoinGeek entitled: 'Ethereum 2.0 – Ether’s journey from a security to a security'

Ayre Goes Off on "Crypto Wankers"

Ayre Goes Off on "Crypto Wankers"

"(He or she) thinks they should be able to buy zero utility tokens pre-mine, illegally manipulate up the markets and then dump to general public and get rich only stealing from the world,"

Syndicate