Is this region the new ‘Mecca’ for Bitcoin miners?
China-based Bitcoin mining industries have long dominated the mining sector. In 2014, 90% of the global hashrate came out of China. But is there a shift in the narrative after 8 years?
Chun Wang, the co-founder of one of Bitcoin’s largest mining pools, F2Pool, gave his opinion on the same. He stated:
“Here at f2pool_official, in April 2021, the first month in our 8 years of operation, we have seen more $BTC hashrate coming from outside of China than from the inside. The shifting is real.”
Another prominent crypto figure, Barry Silbert reiterated a similar proposal in his tweet, dated April 22.
Incredibly proud to announce that the Foundry USA bitcoin mining pool from @FoundryServices just became at top 5 pool in the world!
Bitcoin hashrate is quickly shifting from China to North America pic.twitter.com/6i0UcNlJ04
— Barry Silbert (@BarrySilbert) April 22, 2021
Although a major chunk of Bitcoin mining is still based out of China, there are hints that North America is slowly gaining a foothold in this sector.
What’s the significance of the new paradigm shift?
According to a blog published last year by The University of Cambridge, China-based mining operations declined from 90% in 2014 to around 65% as of late June 2020, US accounted for 8.5%. The mentioned decline was mainly attributed to global geopolitical impact on the mining industry.
However, as of Jan 2021, China’s share hashrate distribution fell by another 10% (around 55% now), whereas the US saw an incline of 11%.
On the contrary, Texas in the US has now become the ‘Mecca’ for Bitcoin miners as stated in a blog published recently by Nasdaq. Using renewable resources could be one of the key factors for this gradual shift.