With China no longer dominating the Bitcoin hash rate, other countries have picked up the slack to provide Bitcoin a robust hash rate once more. The United States, Kazakhstan, Russia, and Canada have all benefited from China’s absence, in order of total hash rate.
According to the Cambridge Center for Alternative Finance (CCAF) data, the United States has now become the largest supplier of Bitcoin mining hash rate. The CCAF estimates that the United States is home to 35.4 percent of all mining activity, accounting for 44 percent of the overall hash rate.
China’s abrupt and complete pullout from the bitcoin mining market prompted this rapid rise to such a high percentage of overall bitcoin mining. To take advantage of the opportunities left by China, mining businesses have purchased equipment and expanded.
Covert mining operations are likely still operating in China, according to Bloomberg. Using a VPN to route operations would make it appear as though the mining was taking place in another country. Ireland and Germany, both of which are not known for their mining operations, have recently increased mining hash rates.
The CCAF admits that action like this, which conceals the true location of mining operations, can impact the data. It read:
Apart from the United States, several countries have benefited from China’s leave. Kazakhstan looks to have benefited greatly from Chinese miners forced to relocate their operations from China. Kazakhstan has provided a hash rate since Q2 to give the country 18.1 percent of the market.
With 11.2 percent of the bitcoin hash rate, Russia is the next largest contributor. Bitriver, based in Russia, has agreed to host more than 100 megawatts of capacity for Chinese customers. With 9.6%, Canada comes in second.