Research from the University of Cambridge shows that most of the Bitcoin network’s computing power now comes from the United States. After the ban on mining in China earlier this year, many miners have moved to the US. Although it concerns about 35% of the global hash rate, states such as Texas and Wyoming are leading the way in adopting bitcoin mining. Russia and Kazakhstan are also popular alternatives for miners. If you’re interested in knowing more about which option is best between central bank and bitcoin visit this link.
United States
According to the University of Cambridge data, the United States is now the global market leader in providing computing power to the Bitcoin network. The country presently has 35.4% of the hash rate. Followed by Kazakhstan and Russia with market shares of 18.1% and 11%
In April 2021, the United States’ market share was only 16.8% of the global hash rate. However, after China introduced a ban on bitcoin mining, the hash rate plummeted, and the mining equipment market was flooded. This situation allowed countries and entrepreneurs to enter the mining industry more efficiently. States such as Texas, Wyoming, and Miami are popular destinations due to favorable policies. Kazakhstan and Russia also took advantage of the opportunity, increasing their market share by 120% and 61%.
The government ban on bitcoin mining in China resulted in a 38% drop in the global hash rate. This is in line with China’s estimated market share before the ban and suggests that the miners stopped simultaneously,” said Michel Rauchs, digital assets manager at Cambridge Centre for Alternative Finance.
Bitcoin is increasingly discussed in American politics. For example, the governor of Texas promises to make the state ‘number 1 bitcoin state’. And Texan Senator Ted Cruz thinks bitcoin could bolster energy infrastructure. They are not the only pro-bitcoin politicians, by the way. Miami mayor Francis Suarez has wanted to pay in bitcoin officially. Senate member Cynthia Lummis recently even bought at least $50,000 worth of bitcoin and even thanked God for the existence of decentralized money. Furthermore, the head of the Federal Reserve, Jerome Powell, has said they have no intention of banning bitcoin. Finally, many rumors about a possible approval of a bitcoin ETF, an index fund that makes bitcoin accessible to institutional investors.
More decentralization in the network
The hash rate has increased by about 20% in July and August. According to Rauchs, this suggests that many mining equipments have been successfully moved to different countries. After the current three mining superpowers, the US (35.4%), Russia (11.23%), and Kazakhstan (18.10%) are Canada (9.55%), Ireland (4.68%), and Malaysia (4 .59%) countries where mining is relatively high.
The ban on mining in China has made the Bitcoin network more decentralized. As a result, the hash rate is more distributed worldwide, which is a positive development for bitcoin’s security and decentralized nature.
Due to the growing global distribution and competition from miners, it is becoming increasingly difficult to obtain a theoretical majority of the hash rate in the network.
Texas Senator Ted Cruz: ‘Bitcoin Could Strengthen Energy Infrastructure
Texas Senator Ted Cruz thinks there are enormous opportunities for Bitcoin in Texas. According to him, bitcoin mining can make the power grid more robust and a solution to the wasteful and climate-unfriendly ‘flaring’, half of which in the United States takes place in Texas.
Texas Senator Ted Cruz said there are enormous opportunities for Bitcoin in Texas at the Texas Blockchain Summit. “First, from Bitcoin’s perspective, Texas has an abundance of energy. We are the number one producer of wind energy in the US.
According to Cruz, Bitcoin can offer solutions against the wasteful and climate unfriendly flaring ‘. For example, gas released during oil production is burned because it is not profitable to collect. “Fifty percent of the gas flared in this country is currently flared in the Permian Basin in West Texas,” he said.
He thinks that’s a shame. “I think it’s a huge opportunity for Bitcoin because right now, it’s energy that’s just being wasted. It’s wasted because there’s no equipment to process the gas to utilize it in the normal mainstream way. So instead, to use it to hook up a generator on-site and mine with the power to bitcoin,” Cruz explains. . That would also be very good for the climate, he thinks.
He also foresees a role for bitcoin mining to strengthen the power grid. Mining equipment consumes a lot of power, but the equipment can easily be switched on and off at any time. “If you have a moment when the power production capacity drops, it creates the opportunity to let the power [that miners take] flow back into the grid,” he explains.
Under normal circumstances, the power that miners take can then be used flexibly according to need. “They [bitcoin miners] then become like additional reserves, which can enhance the robustness of the power grid by making significant power capacity available for critical services when needed. I think the potential is huge, and I expect the landscape to change dramatically in five years.” has changed, and that bitcoin mining plays a vital role in strengthening and making the power grid more robust,” said Cruz.
