According to data provided by the reporter of the South China Morning Post, Josh Ye, China is slowly but surely losing its dominance in the Bitcoin mining industry.
The country’s share of global hashing power is close to falling below 65 percent, a sharp drop from April 2018, when it controlled more than 90 percent of BTC’s network.
Yeh noted that ” conflict and insecurity ” push other countries to Bitcoin .
The blockchain company CoinShares reportedly revealed that Chinese miners are responsible for 66 percent of all newly issued coins as of December 2019 (an increase of six percent since July 2019).
However, it is worth noting that CoinShares does not take into account foreign miners who contribute to Chinese cryptocurrencies. When their hash rate is included in the equation, China’s hegemony remains unchanged.
Luxor Mining, North America’s largest crypto pool, recently estimated that it could still control up to 90 percent of Bitcoin’s total mining power.
Although this figure definitely seems alarming, Chinese mining is becoming increasingly decentralized, with Bitmain lagging behind MicroBT and other competitors.
Stepping on the toes of China
Undoubtedly, China remains the absolute leader in the Bitcoin industry, despite the country’s hostility to cryptocurrencies.
In this situation, the United States and Russia are gradually pulling industry to the West. Both countries already account for 14.11 percent of Bitcoin’s hash rate.
As early as October, Russian entrepreneur Dimitri Marinichev announced his ambitious plans to lease a former Rusal factory in Karelia and launch a huge crypto-mining plant to cover nearly 20 percent of all digging capacity.
Meanwhile, Paypal co-founder Peter Till is investing in the Texas-based crypto startup Layer1 to reduce China’s dominance in the sector.