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China’s move to ban Bitcoin mining activities in its territory sparked widespread panic, dragging the market down with it. Miners had to find other locations to stay in business after being driven out of China.
However, as time passed, other parts of the world opened their doors to these miners to boost cryptocurrency adoption.
The United States, in particular, saw this as an opportunity to take over the country as the world’s new Bitcoin mining capital.
The United States Has Taken Over Bitcoin Mining
According to research, the United States has now taken over China as the preferred location for Bitcoin mining operations.
China has contributed more than half of the total BTC hash rate, making it a significant region for digital assets.
Since the mining crackdown began in May, China's portion of the hash rate has dropped from 50% to 0%.
As a result of China’s prohibition on cryptocurrency and mining, other countries have seized the chance.
Even before the crackdown, the United States accounted for only 16.8% of the overall mining hash rate. The country now contributes 35% of the overall hashrate.
The United States has established a favorable environment for Bitcoin mining, and miners have relocated their operations in large numbers in the region.
The market has now successfully distanced itself from Chinese FUD, which is known to harm cryptocurrency prices. North America currently accounts for roughly half of all hashrate in the world.
Other Countries Are Joining In
The United States is not the only country that has jumped at the chance to accommodate additional Bitcoin miners in the area.
Countries such as Kazakhstan and Russia have also offered incentives to miners to relocate to the region.
Previously, Kazakhstan and Russia were responsible for 8.2% and 6.8% of the global hashrate, respectively.
That figure has now increased to 18.1% and 11% of the global hashrate, respectively. Both nations, along with the United States, are leading the drive in the field for hashrate recovery.
The hashrate, which had dropped by half following the China crackdown, has risen by 156% since then.
After the crackdown was fully implemented, the hashrate fell to a low of 61 EH/s in July. Since then, it has recovered to 156 EH/s.
It's possible that not all bitcoin miners had relocated their operations from Mainland China. According to rumors, there are still a few miners working in the area undercover.
However, the hashrate from the region has declined to the point that it is no longer important to the market.