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The role that China plays in the crypto ecosystem is one that would take a whole lot to replace. New data reveals that despite casting out all forms of crypto activities, China is still the primary home to crypto mining.
Statistics from a new CoinShares report show that China is the country that holds the largest share of hashrate across the globe. Hashrate is necessary for producing new digital coins. With China holding over 60% of this cryptocurrency mining power, you wouldn’t be wrong to conclude that China is the bedrock of the global crypto indusry.
Earlier in June, CoinShares data placed China as holding 60% of the total global hashrate. Just this week, a new report was released, showing that China has gained some momentum in the past 5 months. In short, the country now boasts 66% of the total global hashrate. Thus increasing China’s relevance and necessity in the global crypto ecosystem.
Chris Bendiksen, the head of research at CoinShares, believes that the growing Chinese gains in the crypto mining pie might be the result of a superior cryptocurrency mining equipment.
This is not much of a shocker, though, as the country is known for being at the forefront of emerging technologies. While it is struggling with controlling this new form of digital assets – essentially just like every other country – it is yet concerning itself with other use cases of blockchain technology.
In addition, China is a good place for crypto mining as it has cheap power. It is a no-brainer that most big crypto mining farms are based in China. Take Bitmain, for example, which is lauded as the largest Bitcoin mining chip maker in the world. It is headquartered in Beijing, China. MicroBT is yet another big name in the mining gear industry headquartered in China (and apparently has serious squabbles with Bitmain).
From 60% to 66% Crypto Mining Market Share
More and more investors are also waking up to this new lucrative crypto mining industry. No wonder China skyrocketed from 60% to 66% in a few months. According to the digital assets management firm CoinShares, this is the largest rise that the company has seen since it has started tracking hashrate two years.
Additionally, China is working towards creating its own national cryptocurrency. Since it banned all activities relating to cryptocurrency – including trading, holding, and selling – the country claims it has been working hard to release a safer cryptocurrency that can act as an official currency. Instead of turning their back on the controversial tech, any smart country will look for ways to harness its potential in it and control it. And that is exactly what China plans to do.