University of Cambridge data show China’s share of the bitcoin mining industry was in steady decline even before the country’s crackdown in May.
- According to the Cambridge Centre for Alternative Finance (CCAF), China accounted for a 46% share of the industry in April 2021, compared with 75% in September 2019.
- The methodology is based on China’s share of the power of computers connected to the bitcoin hash rate.
- Data after April are not available, so it is unclear how China’s crackdown on mining has affected the figures.
- The Chinese state began taking harsher steps against the mining industry in late May, shutting down operations in several regions rich in the coal and hydropower that miners been using.
- The main beneficiaries of the decline appear to be the U.S. and Kazakhstan, according to the CCAF.
- The U.S.’s share has more than quadrupled since September 2019, sitting at 16.8% as of April.
- Kazakhstan has become the third-largest producer of bitcoin, with a share of 8.2%.
- There have been signs in recent weeks that the central Asian country is the preferred destination for mining firms migrating from China, with BIT Mining and Canaan both establishing operations there in the past month.
Read more: 3 More Chinese Provinces Shutter Crypto Mines as Clampdown Continues