Bitcoin mining in US surges above China after crackdown
The US has finally managed to overtake China in terms of bitcoin mining as the crackdown on the crypto industry in China continues to cause ripples around the globe and we are beginning to see the after-effects of the same.
China has been cracking down on the crypto ecosystem since the start of the year and that has become even stronger in recent times and unlike the previous times when such bans did not have much of an effect, this time, the authorities seem determined to clean up and we have had many reports that confirmed that the miners are shutting up shop in China. This has not been proved with the US overtaking China in terms of hash rate with the US now accounting for 35.4% of the Bitcoin hash rate globally. While officially, there is no more mining happening in China, it is quite likely that some mining is happening covertly but that is likely to be minuscule when compared to the mining activity that used to early till the early part of this year.
With the mining industry shut down in China, we are seeing the miners seeking other regions with cheap electricity to grow their mining activity once again and this is likely to benefit countries like Kazhakstan where the hash rate has grown to over 18% of the global share. Of course, the overall hash rate would also have been hit due to the stoppage of mining in China but it is expected to pick up in various other regions in the coming months as the rise in the price of BTC continues to make it profitable to keep mining even with slightly higher electricity costs.
Bitcoin mining is likely to go on for a few more years though the returns are expected to dwindle during this period as the difficulty of mining is going to get increased as more bitcoins are mined and the number of bitcoins to be mined is going to become lesser. The crackdown in China has had little effect on the crypto industry so far with prices continuing to move higher and so far, the US seems to be the region that has gained the most benefits from this crackdown and it also seems to be an unwritten policy within the US to go slow on the regulations to make sure that the companies within the US would get the most benefits out of this crackdown.