As the United States consolidates its leadership in the bitcoin mining industry, China has regained second place in the world rankings, despite the fact that this activity was banned last year.
Between September 2021 and January 2022, according to a report published the day before by the Cambridge Center for Alternative Finance (CCAF). The US accounted for 37.84% of the global share, a measure of the computing power used to mine digital currency, especially Bitcoin mining. Having briefly decreased after the update of Chinese legislation, the hash rate returned to its original values last year, and then continued to grow and break records. According to CCAF, after last year’s mining ban in China, the country suddenly showed a sudden surge of activity due to “hidden mining operations” and “became a major mining node again”, taking over 21.11% of the world’s share.
Despite the ban, China makes a comeback in Bitcoin mining
“This strongly suggests that underground mining activity has developed in the country; which empirically confirms what insiders in the industry have long assumed,” the report says. In May last year, Beijing stepped up efforts to counter the cryptocurrency industry, but it seems that local miners have continued to work through the VPN. Therefore, errors could creep in in the CCAF study; it is based on geolocation data provided by large mining pools; while industry participants could use means to hide their location.
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Third place, according to the report, was occupied by Kazakhstan with 13.22% of the world share; followed by Canada (6.48%), and Russia (4.66%) closes the top five.
Bitcoin is recovering after a significant fall that happened recently. The cost of BTC during the day fell to almost $26,000, but now the quotes again crossed the $30,000 mark. Growth per day amounted to more than 12 percent.
Ethereum is growing by 13%: now it has crept up to $2,100 for one ETH. But most altcoins added much more per day. So, for example, BNB has risen in price by 28%, Cardano – by 32%, XRP – by almost 25%, Dogecoin – by 26%.
The capitalization of Bitcoin once again exceeded the mark of $500 billion; and the total capitalization of the crypto market increased by 9.86% per day, to $1.3 trillion. But does this mean that the market will continue to grow further? It is not yet clear.