In the picture in this photo, the Bitcoin logo is displayed on a mobile device with the flag of the People’s Republic of China in the background. (Photo illustration by t / SOAPImages / LightRocket via Getty Images)
Budrul Chukrut | SOPA Images | LightRocket | Getty Images
According to a University of Cambridge survey, London — China’s share of global Bitcoin mining plummeted this year, making Kazakhstan the third-largest player in the industry.
According to a study released Thursday by the Cambridge Alternative Finance Center, China accounted for less than half (46%) of the electricity used for Bitcoin mining in April, a significant decrease from 75.5% in September 2019. Before the authorities ordered a crackdown. About cryptocurrency mining.
In Kazakhstan, the global Bitcoin mining share increased almost six-fold over the same period, rising from 1.4% to 8.2%. Meanwhile, the United States rose from 4.1% to 16.8%, ranking second. Russia and Iran, on the other hand, were the fourth and fifth largest Bitcoin mining countries, respectively.
Bitcoin mining, here The transaction is validated and a new unit is generatedIs a very energy consuming process. Computers around the world are competing to solve complex math puzzles to perform transactions. Anyone who wins this race will be rewarded with Bitcoin.
Rising price Bitcoin Over the years, more people have been motivated to mine cryptocurrencies, leading to the creation of an industry-wide focus on the manufacture and sale of cryptocurrency mining equipment. The more people mining Bitcoin, the more More energy is consumed..
That has led to concerns about the potential of Bitcoin Environmental impactIn particular, most mining was done in China, which relies heavily on coal-fired power. Authorities in several prominent Chinese regions, including Sichuan, Xinjiang Urad Autonomous Region, and Inner Mongolia Autonomous Region, have cracked down on cryptocurrency mining in recent months.
But Cambridge researcher Michelle Raufs says it’s difficult to determine Bitcoin’s energy mix. During the rainy season, Chinese miners often flocked to Sichuan Province, which is rich in hydroelectric power plants in the southwest.
According to Rauchs data, Sichuan’s share of China’s total Bitcoin mining power increased from 14.9% at the beginning of the rainy season to 61.1% from its peak, while Xinjiang Uygur Autonomous Region’s share increased from 9.6% over the same period. It decreased to 55.1%.
It also suggests that many Bitcoin miners fled China for neighboring Kazakhstan (formerly the Soviet Republic) before the June cryptocurrency crackdown.by Bloomberg, Kazakhstan has a power capacity of over 22 gigawatts, most of which comes from coal and gas stations.
Rauchs, Digital Asset Leader of Cambridge Center for Alternative Finance, index Shows the amount of energy Bitcoin will consume in 2019. Scholars said they are working on a new model that explains the environmental impact of Bitcoin mining.
Bitcoin’s poor environmental certification has become a controversial asset when social and environmental responsibility is paramount to investors. May, Tesla CEO Elon Musk Stop accepting Bitcoin for vehicle purchases Unless the mining industry shifts to more sustainable energy.