The massive disconnections and the sharp fall of the Bitcoin hash rate in China relieved miners abroad. The new strength of the business makes centralized entities who seek to combat it face many more challenges.
BTC mining has remained on the path of decentralization, which started earlier this year. Although there were initially many fears and insecurities, that process has become one of the best things for the business.
Many people were alarmed when the Chinese authorities abruptly banned the mining business in the leading provinces. The Asian country housed around 65% of the global hash rate of the first cryptocurrency by market capitalization. The elimination of that amount of computational power would bring many adverse and dangerous implications.
However, the massive disconnections and the sharp drop in the Bitcoin hash rate provided relief for miners outside China. As the fall of computational power caused the proportional decrease in difficulty, mining became more profitable. For that reason, many miners around the world took advantage of that opportunity to start doing so.
The Process of Decentralization of BTC Mining Continues
Bitcoin miners from all over the world took advantage of the activity being easier to start or boost their farms. Consequently, the hash rate on the network began to recover in an accelerated manner until reaching its all-time highs in a few months.
The recovery of the Bitcoin hash rate places the business at a higher level thanks to its decentralization. Therefore, the computational power is the same as before, but it does not concentrate in one place.
In that regard, the United States has become the epicenter of cryptocurrency mining, with approximately 35% of the net hash. Other countries in Asia, Latin America, and even Africa have begun to earn greater prominence. By further spreading throughout the world, the business is more robust under attacks by hackers against the network and the actions taken by controlling governments.
Given the new strength of the cryptocurrency mining business, BTC has become more relevant to world citizens. The centralized entities that seek to combat it must face many more challenges than before the decentralizing process started.
North America is Leading the Bitcoin Mining Business
According to the Cambridge Center for Alternative Finance, North America is the area that concentrates the highest computational power of the business. The United States and Canada represent 44.95% of the global hash rate, preceding Russia and Kazakhstan, which have 29.33% of it.
Of course, those numbers could vary since there is no official data on BTC mining in China. Although the government strictly prohibited the business, thousands of machines seem to be operating clandestinely.
Regardless of that, Bitcoin mining continues its process of decentralization worldwide. Some analysts fear that the United States may concentrate a level of hash rate like China before prohibition in the medium term. Although transparency in the North American country is higher than in China, the centralization of the business would never be positive.
By Alexander Salazar
