There are over one million Bitcoin miners worldwide. These miners ensure that blockchain is decentralized and can never cease to function. In order to stop Bitcoin, you would need to stop almost every miner in the world.
Various countries globally have taken to Bitcoin mining in different ways. In recent news, China closed all mining operations in its country. Meanwhile, Texas Senator, Ted Cruz, looks to use natural resources to mine Bitcoin.
Before the ban, China was a powerhouse in Bitcoin mining. At one point in 2019, mainland China accounted for 75% of the global hash rate. This statistic was used by critics to put doubt into how decentralized the network really was.
Since then, more mining pools have grown and cut China’s global hash rate in half. Today is essentially zero. The banning of cryptocurrencies and the harsh penalties associated with mining have dropped China out of the hash rate race.
With China out, the US now leads the way, with Bitcoin miners accounting for 36% of the hash rate. This is a huge leap for the country, which held only 16% of the hash rate earlier this year. The second and third countries in Bitcoin mining are Kazakhstan and Russia, with both combined hash rates still less than the US’ total.
For years, Cambridge Center for Alternative Finance has been tracking these figures. When the mining crackdown started in China, it had forecasted a trajectory that would see mining equipment leave the country and begin to be deployed elsewhere in the world.
China banning cryptocurrencies is a topic that has negatively moved the market every time it emerges.
The Chinese government would consistently re-release information which would spark another downfall in the market. With no miners left and a complete ban on cryptocurrency in place, it’s a wonder if there will be any more market-moving news from the region.
The redistribution of Bitcoin miners has many enthusiasts excited as China now has less of a hold on Bitcoin than in previous years. Many are also waiting in anticipation to see such a large player step out of the game and watch the industry continue to thrive.
The next big step for the Proof of Work blockchain to remove critics is to find a way to make mining more eco-friendly.