China’s share of bitcoin mining plummeted even before Beijing crackdown, study finds

LONDON, July 15 (Reuters) – China’s share of global bitcoin production has fallen sharply even before a recent crackdown by its authorities on cryptocurrency mining, a Cambridge University study showed on Thursday. .

China has long been the center of global cryptocurrency mining, a power-intensive process. Many bitcoin miners in China use fossil fuels, including coal, raising concerns about bitcoin’s environmental footprint.

The country’s share of the power of computers connected to the global bitcoin network, known as the “hash rate,” fell to 46% in April this year from 75.5% in September 2019, according to data from Cambridge Center for Alternative Finance.

During the same period, the United States’ share of the hash rate increased from just over 4% to 16.8%, making it the second-largest producer of bitcoin. Kazakhstan’s share also increased to around 8%, with Russia and Iran being the other major producers.

The research provides rare insight into global bitcoin mining trends, amid growing concerns from Tesla (TSLA.O) about how cryptocurrency is produced. Read more

China’s decline in mining power preceded China’s state council, or cabinet, crackdown on bitcoin mining and trading in late May, citing underlying financial risks.

Anhui in eastern China this week became the latest province to announce a sweeping ban on cryptocurrency mining. Read more

Major Chinese mining centers, including Sichuan, Inner Mongolia and Xinjiang, have all issued detailed measures since to eradicate the company, crippling the mining industry as miners throw away machinery or move to places like the Texas or Kazakhstan. Read more

Bitmain, China’s largest maker of cryptocurrency mining machines, halted sales last month following Beijing’s mining ban and said it was looking for power supplies to the abroad in places such as the United States, Russia and Kazakhstan. Read more

Reporting by Tom Wilson; Editing by Toby Chopra

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