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China’s Bitcoin Crackdown Shifts the Mining Landscape

This is a syndicated repost published with the permission of Statista | Infographics. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Back in September 2019, Bitcoin miners in China accounted for a massive 76 percent of all computer energy used in the mining of the cryptocurrency. Since the country’s crackdown on crypto though, the landscape has been dramatically changed. In the same month of 2019, miners with IP addresses in the United States were using just 4.1 percent of computer energy – the so-called ‘hashrate’. Fast forward to the summer of 2021 and the U.S. is suddenly the number one consumer of Bitcoin energy, making up over a third at 35 percent with China’s share crashing to 0.0 percent.

Data from the Cambridge Centre for Alternative Finance shows that also making a significant shift is Kazakhstan. In September 2019 the nation’s hashrate was just 1.4 percent. With China no longer officially a player in the industry, neighboring Kazakhstan now has a rate of 18.1 percent. Alex Brammer of cryptocurrency pool Luxor Mining though, says this shift by large miners with older equipment is likely only temporary: “as older-generation machines reach the end of their service lives, those companies will likely deploy new machines into more stable and energy efficient and renewable jurisdictions”.

This chart compares the share of total power used by computers for Bitcoin mining in 2019 and 2021, by country.

bitcoin mining hashrate share of computer energy by country

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