The Bitcoin Hash Rate is Leaving China and Moving to America: Report

With the increase in Bitcoin mining taking place in the United States from 78% in the past to nearly 100% in 2020, Bitcoin seems to be migrating further westward.

That’s according to the latest data from the Cambridge Center for Alternative Finance (CCAF), presented in a report by TokenInsight, which shows the US-based Bitcoin hash rate rose from 4.06% to 7.24% between September of 2019 and April of 2020.

US-Based Bitcoin Hash Rate Climbs 78%

While that moved the US into second place in CCAFs global hash rate rankings, it still leaves the majority of Bitcoin’s mining power within China’s borders.

However, while China currently accounts for an estimated 65.08% of Bitcoin’s hash rate, that’s a rather sizable drop from last September’s figure of 75.63%. The report states:

“Since September 2019, the estimated hash rate in China has shown a slow downward trend, which has dropped from 75.63% to 65.08%; while the United States has begun to increase from 4.06% to 7.24%, up by 78.33%.”

As nearly 14% of Bitcoin’s mining power left China in the time period mentioned, it appeared to depart through the western border.

There is a shift in hashrate to the west. This follows an announcement made by Kazakhstan’s lawmakers in December 2019 that any cryptocurrency obtained as a result of mining will not be subject to taxation until it has been converted into fiat.

Kazakhstan Arrives – Bitcoin Mining Transforms

That followed an announcement by Kazakhstan’s lawmakers in December 2019 that any cryptocurrency gained by mining won’t be subject to taxation until it is converted into fiat. “2021 will be a key year in how the mining industry transforms,” In addition, “this will mean that unstructured mining operations will gradually disappear over time, being replaced by efficient, professional and structured management practices,” as stated by TokenInsight.

A good way to deal with it is through . Bitcoin hash rate seems to be migrating west after an increase of 78% in the number of Bitcoins being mined in the United States between 2014 and 2016, leading into 2020.

“With the conclusion of the Bitcoin third halving, there would be a sell-off of old mining machines in the market. Therefore, 2020 will be a key year for the progressive transformation of the mining industry,” reads the report.

It states: "Since September 2019, the estimated hash rate in China has been steadily declining, dropping from 75.63% to 65.08 percent; while in the United States, it has been on the rise from 4.06% to 7.24%, up by 78%."