24 November, 2020 

China's dominance of bitcoin mining shrinks

Bitcoin mining is no longer as relevant a means of making money on cryptocurrencies for users as it used to be. After all, this process is quite resource-intensive, and now entire huge mining farms are engaged in this, occupying large production facilities. Over time, the balance of power in the Bitcoin mining industry has also changed.
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China's dominance of bitcoin mining shrinks

A group of analysts at Arcane Research conducted a study and found that now there are new labor drummers in mining. If earlier China was leading in this area by a large margin from other countries, now its dominance in this area has decreased. The results of the study showed that in 2020, the share of the hash rate of the Bitcoin network attributable to China was 65.1%. For comparison, as of September 2019, this figure for China was 75%. What caused the decline in activity?

The world joined the race

It's not that China has started to mine fewer bitcoins, but that now there are other undefined countries that are increasing their computing power in the race for cryptocurrency number 1. The same study showed that the number of miners from the United States alone almost doubled - 5% and 7.2% in 2019 and 2020, respectively. Kazakhstan also showed a serious breakthrough. This year, he made 6.2% of the total hash rate of the Bitcoin network. Iran is also rapidly expanding capacity. This can be seen in the 3.8% indicator this year.

There is information that Americans are actively buying up mining equipment. Thus, in recent months, several US firms have signed contracts for the acquisition of flagship units of bitcoin miners. And Marathon Patent Group has entered into a long-term contract with Bitmain for the purchase of as many as 13,100 miners. So we should expect even better results from America.

Kazakhstan also started pouring money into Bitcoin mining. In September this year, a powerful data center was opened there, capable of accommodating 50,000 devices for mining. Even the government of Kazakhstan was concerned about bitcoin, undefined raising funds for the development of the cryptocurrency industry. As a result, agreements on investments in the amount of $ 700 million have already been reached. Just imagine what tremendous opportunities such money can give to the crypto industry in Kazakhstan!

Now we know from which sides to expect a breakthrough next year. Although the mentioned states became the headliners of the study, in fact, all countries are gradually getting involved in Bitcoin mining, and they are doing it more and more actively. Let's see what will be the alignment of forces in his hash rate in a year.

Learn more: How Should You Reinvest In A Blockchain Product?

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