China has gone from being a major cryptocurrency mining powerhouse in just a few monthss to representing 0% of the activity in that sector. At its peak of activity, in September 2019, the Asian power came to host about 75% of all cryptocurrency mining in the world. However, the war of the Chinese authorities against this digital asset has caused that percentage to gradually plummet.
China once mined 75% of the world’s cryptocurrencies, but now its market share is 0%
A group of researchers from the University of Cambridge has created an index of electricity consumption destined for mining Bitcoins. In an interactive map on their website you can see the Chinese territory in white, which means 0% activity.
At the other extreme is the United States which, taking advantage of China’s abandonment, has increased its market share to 35.40%. The second place is occupied by Kazakhstan, with a share of 18.1%. Russia completes the podium, where 11% of all cryptocurrencies in the world are mined.
China is not likely to regain its position in the ranking. Just this week, the Asian power has now included cryptocurrency mining in its list of “negative” industrial activities. In practice, this means that investment in this sector can be limited or even banned altogether.
This veto affects domestic and foreign nationals alike. Investors in cryptocurrency mining are required from now on to apply for a permit from the Chinese authorities. In view of the government’s campaign against digital assets, it is unlikely to grant licenses for this activity. Thus, mining and trading cryptos will become virtually impossible in the country.