Back in 2019, China was the global leader in Bitcoin mining. According to Cambridge Bitcoin electricity Consumption Index (CBECI), China accounted for more than three-quarters of the global mining of Bitcoins. However, many predicted a landslide for cryptocurrency when China decided to ban all crypto-related activities and mining of cryptocurrency in June 2021. The initial trends did correspond to the fears. As per CBECI, China’s ban decreased bitcoin mining by 38% in the months following the decision. After the initial storm settled, the picture started to change. The price of Bitcoin went up and recently hit its highest ever in over five months. Within July and August, CBECI reports a 20% bounce back. Many experts claim that this is because a large number of mining equipment were successfully transferred to other countries.
Miners earn a living or a secondary income by mining Bitcoins and other cryptocurrencies. Mining Bitcoins is both technology and power intensive. Huge computer capabilities are needed to mine even a single Bitcoin. To power these computers, huge amounts of energy are also required. The CBECI tracks this power consumption across the world and gives its reports. By seeing trends in power consumption due to Bitcoin mining, the report can show which countries are leading in cryptocurrency mining.
As the latest reports of CBECI show, the United States of America now accounts for 34.5 percent of global Bitcoin mining. The second country on the list is Kazakhstan with an 18.1 percent global share. Russia is in third place with an 11 percent share. The report restates what many experts claim to be a 100% recovery from all the damages caused by the China ban