China's share of bitcoin mining slumped even before Beijing crackdown, research shows

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Illustration picture of China flag and cryptocurrencies
A Chinese flag is seen among representations of Bitcoin and other cryptocurrencies in this illustration picture taken June 2, 2021. REUTERS/Florence Lo/Illustration/File Photo Purchase Licensing Rights, opens new tab
LONDON, July 15 (Reuters) - China's share of global bitcoin production power fell sharply even before a recent crackdown by its authorities on cryptocurrency mining, research by the University of Cambridge showed on Thursday.
China has long been the centre of global cryptocurrency mining, an energy-intensive process. Many bitcoin miners in China use fossil fuels including coal, stoking concerns over bitcoin's environmental footprint.
The country's share of the power of computers connected to the global bitcoin network, known as "hash rate," fell to 46% in April this year from 75.5% in September 2019, according to the data from the Cambridge Centre for Alternative Finance.
In the same period, the United States' share of hash rate jumped to 16.8% from just over 4%, making it the second-largest producer of bitcoin. Kazakhstan's share also rose to around 8%, with Russia and Iran the other major producers.
The research gives a rare glimpse into global trends of bitcoin mining, amid increasing worries from the likes of Tesla (TSLA.O), opens new tab over how the cryptocurrency is produced. read more
The decline in Chinese mining power came ahead of a crackdown by China's state council, or cabinet, on bitcoin mining and trading in late May, citing underlying financial risks.
Anhui, in eastern China, became this week the latest province to announce a sweeping ban on cryptocurrency mining. read more
Major Chinese mining hubs including Sichuan, Inner Mongolia and Xinjiang have all issued detailed measures since to root out the business, paralysed the mining industry as miners dump machines or move to places including Texas or Kazakhstan. read more
Bitmain, China's biggest maker of cryptocurrency mining machines, last month halted sales following Beijing's mining ban, and said it was looking for power supplies overseas in places including the United States, Russia and Kazakhstan. read more

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Reporting by Tom Wilson; Editing by Toby Chopra

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Tom covers crypto companies, regulation and markets from London, focusing through 2022 on the Binance crypto exchange. He has worked at Reuters since 2014, with a previous posting to Tokyo where he uncovered abuses in Japan’s immigration system and won a joint Overseas Press Club award for reporting on the tobacco giant Philip Morris.

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