According to a study by the University of Cambridge, China’s share has plummeted since this year’s global Bitcoin mining, while Kazakhstan has emerged as the world’s third-largest player in the industry.
According to a study published Thursday at the Cambridge Center for Alternative Finance, China accounts for less than half (46%) of the electricity used to mine Bitcoin in April, which is September 2019. It decreased sharply at 75.5% of the month. Before the authorities. Ordered to crack down on password money mining.
During the same period, Kazakhstan’s global Bitcoin mining share increased almost six-fold from 1.4% to 8.2%.
On the other hand, the United States rose to 16.8% at 4.1%, occupying second place, and Russia and Iran occupy fourth and fifth places in their respective bitcoin mining volumes. Bitcoin mining is a very energy-intensive process, where transactions are verified and new units are created. Computers around the world are competing to solve complex mathematical puzzles to carry out transactions. Anyone who wins this race will be rewarded with bitcoins.
The rising price of bitcoin over the years has incentivized more people to mine the cryptocurrency, leading to the creation of an entire industry focused on manufacturing and selling crypto mining equipment. The more people mining bitcoin, the more energy gets consumed.
That has led to concerns over bitcoin’s potential impact on the environment, especially as most mining was done in China, which is heavily reliant on coal power. Authorities in several prominent Chinese regions, including Sichuan, Xinjiang, and Inner Mongolia, have clamped down on crypto mining in recent months.
But Cambridge researcher Michel Rauchs says bitcoin’s energy mix is difficult to determine. In the rainy season, Chinese miners would often flock to Sichuan, a hydropower-rich province in the southwest.
Rauchs’ data shows Sichuan’s share of total bitcoin mining power in China increased to 61.1% from 14.9% at the beginning of the wet season to the peak, while Xinjiang’s share decreased to 9.6% to from 55.1% over the same period.