The U.S Surpasses China As The Worldwide Leader In BTC Mining

The United States now accounts for more than 35% of the world&39s hash power. The country has greatly benefited from China&39s still ongoing crackdown on all activities and operations related to cryptocurrencies, in particular the nation&39s Bitcoin (BTC) mining prohibition. Most recently, a number of Bitcoin mining rigs that were being operated via public officials in the Zhejiang province had been shut down by the Chinese government, thereby adding it to the list of other provinces such as Sichuan and Xinjiang who shared the same fate.

This has political ramifications for how both the flagship cryptocurrency and various other altcoins would be viewed going forward in the United States. Simultaneously, the general regulatory attitude of the U.S regarding the crypto industry and the market remains relatively unclear.

China&rsquos loss is the U.S&rsquo gain

Amid China&39s extensive crackdown on the cryptocurrency sector, the United States has seized the top ranking as far as Bitcoin mining is concerned for the very first time. A number of retail and institutional investors along with various industry leaders thus do not expect this trajectory to reverse in the foreseeable future, although others have stated that mounting pressure from regulatory authorities will be a continuous challenge that must be overcome.

No matter what the future may hold, however, the Bitcoin network&39s hashrate, which is a gauge of the computing resources needed to execute mining operations, has rebounded from its July lows, despite the fact that China&39s ban on Bitcoin mining had caused miners to suspend their operations and relocate elsewhere.

As per the data analytics provided by Glassnode, the Bitcoin network&39s hashrate has now increased by around 117% to 133 EH/s as of this week from a low of 61 EH/s back in July. As of this writing, the United States has managed to more than double its hashrate from this past April, which was around 17% at the time.

Keeping an eye on Russia

Although the United States is currently the global leader in Bitcoin mining, another country is steadily gaining ground. Following China&39s ban on cryptocurrency mining, the Irkutsk region of Russia witnessed its energy usage rates increase by a considerable 160%. Russia&39s Ministry of Energy is therefore considering the implementation of distinct electricity tariffs pertaining to the cryptocurrency miners.

The United States and Russia have a complicated history, to say the least. It is hence difficult to imagine that the latter would want the former to maintain its position atop the Bitcoin mining sector for long. Similarly, the U.S cannot ignore the explosive growth of Bitcoin mining which is occurring in Russia, as was made evident when several Russian districts were supposedly experiencing exponential increases in energy usage, presumably as a result of Chinese miners fleeing the country amid a countrywide cryptocurrency-oriented crackdown.