Chinese Bitcoin miners are now responsible for controlling nearly 66 percent of the global Bitcoin hash rate.
China asserts dominance over the Bitcoin hash rate
China’s Sichuan province is the leading Bitcoin mining region in the country with the province alone accounting for over 50 percent of the world’s hashrate. The study was conducted by CoinShares as reported by Reuters on December 11. The Sichuan province is followed by Yunnan, Xinjiang and Inner Mongolia provinces with each contributing to the hash rate.
What is the Bitcoin hash rate?
Hash rate us a measure of the computing power of a network such as a blockchain. The computing power in question is used to facilitate the validation of transactions conducted on the network. The hash rate is controlled by miners. Similarly, the larger the hash rate controlled by a party, the greater the profits earned through it will be. If a network’s hash rate is high, it means that the mining activity is high and vice versa.
CoinShares reported that the nation’s contribution to the global hash rate has increased by 60 percent across the last five months. The hash rate is the highest ever recorded since the company was established back in 2017. Outside of China, other mining hubs are located in the United States, Russia, and Kazakhstan.
Experts believe that the spike in the country’s mining rate is due to the change in the mining hardware used by such pools. Chris Bendiksen at CoinShares noted that using more advanced mining hardware is “beneficial” to China. He stated that if one entity could improve before its peers, it was good and could allow them to assert supremacy.