China’s State Council, or cabinet, banned cryptocurrency mining and trading in May, citing environmental and financial concerns. The decision prompted an exodus of miners in search of cheap energy and crypto-friendly politicians. China’s bitcoin mining ban resulted in the “great mining migration,” said Sam Tabar, chief strategy officer at Bit Digital, a New York-based bitcoin miner. The company suspended its operations in China, which it had been winding down since October 2020, after the prohibition. Michel Rauchs, digital assets lead at the closely watched Cambridge tracker, noted that “the effect of the Chinese crackdown is an increased geographic distribution of hashrate across the world,” adding that it could be seen as “a positive development for network security and the decentralised principles of bitcoin.”
The US overtook China as the world’s biggest source of bitcoin mining two months after Beijing banned crypto mining this year, new data have revealed. From a report: China’s share of the global hashrate — the computational power required to create bitcoin — fell from 44 per cent to zero between May and July, showed figures published by the Cambridge Centre for Alternative Finance on Wednesday. The country accounted for three-quarters of the global hashrate in 2019. The US share of the global hashrate increased from 17 per cent in April to 35 per in August, while Kazakhstan rose 10 percentage points to 18 per cent in the same period.