Bitcoin has had a mixed definition in China, but the country didn’t experience any decline in an escalating interest in crypto mining activity. In fact, it was reported that one Chinese province controls around 54 percent of the global mining hash rate.
According to the CoinShares report on Reuters, China controls over 2/3rd of total Bitcoin mining, out of which 54 percent controls by the Sichuan, a province of China. Although this news appears on a surprising note to many, given that China isn’t adamant of Bitcoin, it also hints that the country is the primary spot for miners of crypto space. Also, it was reported that the remaining 36% of bitcoin miners could be found across the US, Russia, and Kazakhstan.
Nevertheless, the CEO of Binance Changpeng Zhao who earlier worked at the China-based OKEx exchange before launching Binance asserts that;
Mining is highly encouraged in China now. They hope to control bitcoin by having all the miners in the country (i.e, under their control)
Moreover, as per CoinShare’s previous report published in mid this year, Bitcoin’s hash rate has witnessed a significant surge. Notably, it soared by almost 80 percent when bitcoin was trading at the all-time high (ATM) of this year. Nevertheless, CoinShares hints that China was behind the spike of about 70 percent of Bitcoin’s price.
It’s worth adding that China accounts for 66 percent of the global hash rate. According to the research head of CoinShares, Christopher Bendiksen, and another research analyst at the firm, Samuel Gibbons, miners have been leveraging benefits from increased cashflows. However, it was reported that Chinese mining activities are majorly rising because it is predominantly driven by hydro electronic power.
Especially in spring and summer, from rejuvenated bitcoin prices to reinvest in more powerful and more efficient mining gear – both to secure their share of network hash rate against the advent of next-generation hardware and as an efficiency preparation for the upcoming block reward halving,”, Bendiksenand Samuel Gibbon said in a blog post.
Chinese controlling primary bitcoin mining is strange as the policymakers and regulators in China aren’t supporting Bitcoin or other crypto activities. Instead, regulators in China are majorly focusing on to escalate the effort of launching the country’s decentralized digital currency.
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