Miners based in China currently control two-thirds of the total processing power of the bitcoin network. It is reported by Reuters, citing a fresh report by CoinShares.
In June, this value was 60%, reaching the highest level in December over the past two years, during which CoinShares tracks this data. According to the chief researcher of the company Chris Bendiksen, such superiority of Chinese miners may be due to a large number of farms or more advanced equipment for mining cryptocurrency.
This is beneficial to the Chinese mining industry. If you are the first to increase your proportion of the hashrate, and you can do that before your competitors, that’s generally good.
Head of Research at CoinShares
As the publication recalls, such major mining equipment manufacturers as Bitmain, MicroBT and Canaan are also based in China.
CoinShares representatives also noted that since June, the bitcoin hash rate has increased by 80%, which was partially possible due to the high profitability of this activity and more powerful equipment.
Bitcoin Difficulty Chart
Despite the harsh rhetoric of the Chinese authorities regarding cryptocurrencies, in November, the National Development and Reform Commission (NDRC) did not include mining in the list of “undesirable industries” that are subject to ban.