The U.S. is now the number one destination for bitcoin miners, eclipsing China for the first time ever. While it was already trending in that direction, new data from Cambridge University released early Wednesday makes it official.
As of July, 35.4% of bitcoin's hashrate â an industry term used to describe the collective computing power of miners â is in the United States, according to the Cambridge Centre for Alternative Finance. That's a 428% increase from September 2020.
America partly has China to thank for its newfound dominance in the mining industry.
Twelve months ago, China was the market leader in terms of hashrate â by a long shot. But Beijing's crypto crackdown in the spring took half the world's bitcoin miners offlineÂ practically overnight.
Miners started fleeing China en masse, heading to the cheapest energy sources on the planet in what was dubbed "the great mining migration." A whole lot of them ended up in America.
The newly-released Cambridge data zeroes out China's average monthly share of the global hashrate in July â a major reversal from September 2020, when China captured about 67% of the market.
"The whole narrative of China controls bitcoin is now completely destroyed,"Â saidÂ Boaz Sobrado, a London-based fintech data analyst.Heading to America
The U.S. ticks a lot of boxes for migrant bitcoin miners searching for a new home.
For one, states like Texas boast some of the world's lowest energy prices, which is a major incentive to miners who compete in a low-margin industry, where their only variable cost is typically energy.
The U.S. is also flush with renewable power sources.
Washington state is a mecca for hydropowered mining farms. New York produces more hydroelectric powerÂ than any other state east of the Rocky Mountains, and it counts its nuclear power plants toward its 100% carbon-free electricity goal. Meanwhile, Texas' share of renewables is ...