by 2 minutes In this illustration picture taken June 2, 2021, a Chinese flag is seen among representations of Bitcoin and other cryptocurrencies. Illustration courtesy of REUTERS/Florence Lo (Reuters) – LONDON (Reuters) – China’s share of global bitcoin production power declined substantially even before the Chinese government’s recent crackdown on cryptocurrency mining, according to new data released on Thursday by the University of Cambridge. China has long been the epicenter of Bitcoin mining, which is a high-energy operation. Many bitcoin miners in China use coal and other fossil fuels, raising concerns about bitcoin’s environmental impact. According to data from the Cambridge Centre for Alternative Finance, the country’s share of the power of computers connected to the worldwide bitcoin network, known as “hash rate,” plummeted to 46 percent in April this year from 75.5 percent in September 2019. During the same time span, the United States’ share of hash rate increased from just over 4% to 16.8%, making it the second-largest bitcoin producer. Kazakhstan’s contribution increased to roughly 8%, with Russia and Iran rounding out the top three producers. The study provides a unique look into worldwide bitcoin mining habits, amidst growing concerns from companies like Tesla about how the cryptocurrency is created. The drop in Chinese mining power occurred ahead of a crackdown on bitcoin mining and trading by China’s state council, or cabinet, in late May, citing underlying financial dangers. Anhui, in eastern China, became the latest province to declare a blanket ban on cryptocurrency mining this week. The mining industry has been paralyzed in China’s major mining hubs, including Sichuan, Inner Mongolia, and Xinjiang, as miners dump machines or relocate to locations like Texas or Kazakhstan. Following Beijing’s mining ban, Bitmain, China’s largest maker of cryptocurrency mining devices, ceased shipments last month and said it was exploring for power supply in areas including the United States, Russia, and Kazakhstan. Tom Wilson contributed reporting, and Toby Chopra edited the piece./n
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