According to Cambridge, China’s hashrate for Bitcoin reduced by 40% before the news to suspend all mining operations but it rose 4× in the U.S.
Many people believe that the reason why miners left China for the western countries to continue their mining activities is because the Chinese government placed a ban on it. However, the Cambridge Centre for Alternative Finance is saying a different thing, which is that the movement away from China started before the government’s ban.
Reuters revealed that China lost about 29.5% of computing power within 18 months, counting from September 2019. This was before the government decided to suspend BTC mining.
Within the same period, hashrate in the U.S. multiplied by 4 such that its contribution on the global scale for BTC mining reached 16.8%. It was also within the same period that Kazakhstan started making name for itself as its own global contribution rose to 8%.
China was forced to suspend mining operations in April when power outages in Xinjiang became regular. Apart from power outages, the government was also concerned about the level of carbon waste that was produced in the area.
The CEO of iMining, Khurram Shroff, believes that China’s ban on BTC mining is a blessing in disguise because it helped in relocating miners to several other places in the world. For example, in Toronto, a BTC ETF was listed for public consumption.
Some say it wasn’t difficult for China to take that decision because it needed some international favor. The IMF had earlier tasked China to reduce carbon emission to qualify for funding. Even the World Bank wasn’t going to send financial assistance if carbon emission in the country remained at the same level. China thought the best way to attain the target was by proscribing BTC mining.
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