China’s Bitcoin dominance drops as global competition escalates

A new report reveals that China’s share of the global bitcoin mining hashrate is deteriorating, while global hashrate jumps 25%.

The Bitcoin Mining Map from the Cambridge Center for Alternative Finance (CCFAF) reveals that China’s dominance in bitcoin mining is waning down. At the same time, the global hashrate is increasing. The report adds that the United States reclaims its second place position in terms of global hashrate.

Hashrate is the total computational power of a specific network in mining bitcoin. The higher the hashrate is, the easier it is for the network to mine bitcoins. China has been the global leader for bitcoin hashrate for many quarters. This lead to fears that the country’s bitcoin mining community can disrupt global market due to their dominance.

Global hashrate

The Cambridge report reveals that while China’s hashrate did dip a little bit, it still maintains its superiority. For the month of April, China is responsible for a total of 65.08% of the world’s total hashrate. The United States is in second place with 7.24%, while Russia places third with 6.90%.

In terms of local performance, the province of Xinjian leads China with 36%. While this is still a massive number, it represents a dip of about five percent than the previous four months.

The global bitcoin map shows that Europe has the most number of mining participants. However, despite many countries appearing on the list, their combined hashrate pales in comparison to that of China’s.

In Europe, Norway has the highest global hashrate with 0.8 percent. Germany reports 0.44 percent, while Ukraine reports 0.20 percent. Meanwhile, France has a 0.18 percent hash rate, while the United Kingdom has a total of 0.1 percent,

China’s dip

China’s global mining hashrate drops more than 10 points since September. The exact reason behind the drop is still unknown. However, there are a number of reports claiming that the coronavirus pandemic lockdown may have something to do with it.

It is also important to note that the data from Cambridge’s report comes from APIs that connect to just three mining pools. These pools are BTC.com, ViaBTC, and Poolin. The three APIs are responsible for about 37% of the total global hashrate.

This is an especially difficult times for miners. Miners are now starting to turn off some of their machines as due to extreme difficulties in mining.

It is also important to note that bitcoin halving will take place within the next several days. This means that mining will be even more difficult as mining rate will begin to drop.

Image courtesy of  André François McKenzie/Unsplash

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.