US Overtakes China as largest Bitcoin Miner

Bryan Dijkhuizen

Previously, sophisticated computer systems in China were responsible for the majority of bitcoins coming across the globe.

According to the Cambridge Center for Alternative Finance, the Chinese government is growing more strict on the cryptocurrency market, resulting in the nation making just a marginal contribution to the total global supply of cryptocurrency coins.

Bitcoins, like other cryptocurrencies, are exchanged via the use of a blockchain, which functions as a decentralized order book that is updated in real-time worldwide.

Any addition anywhere in the network must be matched by solving a complex mathematical calculation, which is not straightforward.

To earn bitcoins, entrepreneurs across the globe have started using specialized computer systems to calculate at all hours of the day and night.

Chinese bitcoin miners were the biggest, taking advantage of cheap energy costs to mine bitcoins at a time when they were able to do so at a low cost. However, the People's Republic of China is working on a ban on bitcoin and other similar activities this year.

For example, provinces have declared a ban on the practice, and authorities have tightened their regulations.

The campaign against Chinese miners is beginning to yield fruit. According to the Cambridge Center for Alternative Finance, while China accounted for 75 percent of all computer power utilized globally for bitcoin mining in September of this year, this figure has dropped to practically nothing in the following month.

The share of the United States has increased to 35.4 percent, more than doubling from April's figure.

Chinese miners may still be active in their own country, but they are hiding behind virtual private networks that are protected from prying eyes (VPN).

They provide the impression that computer systems are situated in another location. According to the experts, it is very likely that a recent rise in the processing power available for bitcoin mining in Germany and Ireland is the consequence of bitcoin miners using virtual private networks.

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