• Sat. Mar 2nd, 2024

China May Be Losing the Bitcoin Hash Rate

May 6, 2021
Coinone

Ever since Bitcoin (BTC) mining was introduced, the country that has taken charge of most of the mining is China. Until today, China is current with the highest hashrate generated from Bitcoin (BTC). According to many sources, China currently comprises around 34% of the total hashrate generated from Bitcoin (BTC) mining.

For years, China has held the crown for being the highest BTC hashrate generator in the entire world. However, things have become a bit bumpy for the Chinese mining sector in the past couple of years. This may result in China finally losing its crown for being the top hashrate generator for Bitcoin (BTC).

Although China still holds the crown for being the highest hashrate generator for Bitcoin (BTC), yet the situation has started changing. Many on-chain data-analyzing firms observing the global hashrate generated by Bitcoin (BTC) have started telling a different story around China.

According to these firms, China is slowly losing the hashrate percentage it used to have back a few years back. Back in April 2020, the cofounder of F2Pool, one of the largest Bitcoin mining pools in China made a claim backed by facts.

Chun Wang claimed that China was responsible for generated 50% of the total hashrate being generated for Bitcoin (BTC) all over the world. However, Wang’s recent comment on the Twitter platform now has the entire cryptocurrency mining community talking.

Wang tweeted that he is shocked to have witnessed Chinese Bitcoin (BTC) miners generate hashrate for Bitcoin (BTC) in minority. According to him, it was for the first time in eight years that he saw such a downfall for the Chinese BTC mining community.

He added that the reason behind China’s downfall in regards to BTC mining hashrate is the energy crisis in China. Since 2020, China has been facing an alarming situation with its energy generation from coal. China had stopped importing coal from Australia, which is one of the largest coal providers.

This resulted in the shortage of coal in the country and the electricity generation companies ran out of coal so no energy could be produced.

He stated that as a result of the above, the hashrate for Bitcoin mining is slowly slipping out of the hands of the Chinese BTC miners. The situation around the hashrate is changing globally and new countries are now taking China’s place as the highest hashrate generating companies for BTC.

At present, only two countries have the capacity and resources to generate higher hashrate for BTC mining than China. The first country is Russia and the other one in the United States. Both countries are competing with each other to gain superiority over the other in terms of hashrate generation for BTC.

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