blockster.com
Recent data revealed that the United States has become a top destination for bitcoin miners, majorly due to the country's low energy prices.
According to data from the Cambridge Bitcoin Electricity Consumption Index (CBECI), the US accounts for over 35% of the global bitcoin hashrate, as of August 2021. The current figure is an astronomical rise from 4.1% in September 2019, and 16.8% in April 2021.
Bitcoin mining is an energy-intensive business, which has led miners to seek out countries with cheaper energy. This is one of the factors that make the US attractive for Bitcoin miners.
Texas, a state in the US, boasts of one of the world's cheapest energy prices, with the abundance of wind and solar power also making the state a prime destination for Bitcoin miners. Furthermore, Texas' pro-crypto stance, robust supply of hosting infrastructure, and a deregulated power grid are factors that make Texas attractive to miners.
Other U.S. States with renewable power sources include Washington and New York. Meanwhile, the current status of the US as a leader in the global hashrate did not happen overnight, as the country has been making preparations in recent years.
According to the co-founder of the North American crypto mining operator Core Scientific, Darin Feinstein, the company witnessed an increased growth in mining infrastructure in the US in the last one and a half years. Feinstein added by saying that there has been a "massive uptick in mining operations looking to relocate to North America, mostly in the U.S.”
China used to control the largest share of the global hashrate, with the country accounting for over 75% of the total Bitcoin mining power in September 2019. However, China's dominance began to drop, following the government's crackdown on Bitcoin mining activities.
Back in May, Liu He, the Vice Premier of the People’s Republic of China, renewed calls for the clampdown of the BTC mining sector. Later in June, the Chinese government carried out a nationwide crackdown of the industry, with miners in regions such as Sichuan, Inner Mongolia, Yunnan, Xinjiang, and Qinghai subsequently shutting down operations.
Meanwhile, a report by the Cambridge Centre for Alternative Finance (CCAF) in July showed that China's control of the global hashrate already experienced a decline at 46% in April, prior to the country's crackdown efforts.
In September, the People's Bank of China (PBOC) put a blanket ban on all crypto-related activities, including BTC mining and trading.
Major Bitcoin mining machine manufacturer Bitmain, recently announced that it would stop the delivery of its Antminer cryptocurrency mining rigs to Mainland China, starting from October 11. The company, however, said that it will continue to supply users in Hong Kong and Taiwan.
Unsurprisingly, the recent CBECI data does not include China's global hashrate average monthly share in July and August.
With the US taking the number one spot, Kazakhstan is the next preferred destination for Bitcoin miners, with the country controlling over 18% of the total hashrate. The percentage is significantly higher than 8.2% recorded in April 2021.
While Kazakhstan also offers cheap energy, the Central Asian country is home to an abundance of carbon dioxide emissions. However, what could make Kazakhstan not a long-term destination for Bitcoin miners is the country's plan to impose taxes on miners by 2022.
Meanwhile, China's negative attitude towards Bitcoin mining seems to have a positive side, according to a statement from a report by the Cambridge Centre for Alternative Finance (CCAF), which said:
"The effect of the Chinese crackdown is an increased geographic distribution of hashrate across the world, which can be considered a positive development for network security and the decentralised principles of Bitcoin."