According to the Cambridge Centre for Alternative Finance, after China banned bitcoin mining last year, a large number of local miners have reconnected to the network.
In fact, China is still second in the bitcoin network’s hash rate with 21.11%, with the U.S. in first place at 27.69%.
Before the government outlawed this activity in September 2021, China accounted for roughly half of the global bitcoin hashrate.
This suggests that we are dealing with a mass exodus and a mass return of miners who continued to operate despite the ban, or that the miners have not stopped their activities, hiding their whereabouts.
In theory, miners could deliberately mislead by hiding their location using virtual private networks (VPNs),” the study authors noted. – But in practice, we believe, this possibility only moderately affects the reliability of the overall analysis.
According to Alexander Neumüller, head of the research team, it is unclear how many Chinese miners were actually shut down in July and August.
In December, CNBC reported, citing anonymous sources, that 20 percent of all global bitcoin miners were still in China.
Nevertheless, as of December 2021, the United States was the world leader in bitcoin network hash rate with a share of 37.84%.
Canada had the opposite performance. Although the country’s August 2021 hash rate rose from 11.54 eps to 12.15 eps as of January 2022, Canada’s share actually dropped from 9.55% to 6.48%. Researchers attributed this fact to the rapid growth of the network itself.
Recently, Kazakhstan, which has become a popular destination for Chinese miners, has actually forced some of the operators of this business to leave the country. As a result, the country’s market share dropped to 13.22% from 18.31% as of October 2021.