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Renewed data compiled by the University of Cambridge supports the idea that China’s global dominance of bitcoin mining has already faded before the country’s recent crackdown.
The Cambridge Center for Alternative Finance (CCAF) updated its bitcoin mining map data on Thursday, showing that the global dominance of China’s bitcoin mining had steadily declined between April 2020 and April 2021.
The results corroborate the Block’s report in April that China’s dominance was fading amid the growing profile of institutional investors in North America.
The CCAF first deployed the mining map in May 2020 with data available from September 2019 to April 2020 but, until today, it had not performed any updates to the dataset during of the past year.
Rise and fall
As of April 2020, bitcoin mining map data came from three Chinese bitcoin mining pools with international customer bases – BTC.com, ViaBTC, and Poolin – which collectively accounted for around 30% of the total bitcoin hash rate. . As of that point, the CCAF sample data estimated that China’s hash rate dominance was 65%, showing that it had already declined from 75% in September 2019.
As of April 2021, however, the CCAF estimated that China’s hash rate percentage was still less than half, at 46%. Although the percentage may be relatively skewed due to the inclusion of data from a mining pool primarily focused on the United States.
While the renewed dataset pulls information from the three existing Chinese mining pools over the past 14 months, it has added data from the Foundry USA pool for the period between February and April of this year, according to the CCAF methodology. .
The mining map, however, did not include data for May and June, a critical period that saw the bitcoin hash rate drop significantly due to the Chinese crackdown on local bitcoin mining farms.
On-chain data shows bitcoin’s hash rate has fallen by more than 50%, from its peak of 180 EH / s in mid-May to just under 90 EH / s in late June.
The Chinese government revealed its crackdown on May 21, and follow-up action materialized in early June. This suggests that the dominance of China’s bitcoin hash rate before the crackdown could have been between 50% and 60%.
Along with the declining hash rate in China, the CCAF mining map also shows the growth of overseas regions, with the United States occupying the second largest percentage of the global hash rate. It now held a 16% stake in April, down from 7% a year ago.
Other regions like Russia, Kazahkstan and Iran have also experienced steady growth over the past year.
© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.
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