Until recently, China accounted for more than half of all bitcoin mining. But since the crackdown by the Chinese government, market dominance is expected to shift to the west.
Part of the recent decline in Bitcoin and other cryptocurrency prices is thought to be related to the deluge of miners selling currencies for the cash needed to move their operations.
The recent ban on crypto mining was instituted ostensibly for environmental concerns and to prevent criminal activity, but the recent announcement by The People’s Bank of China will create an official digital currency, the Digital Currency Electronic Payment (DCEP), points to other motivations.
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Especially, in this case, the word 'crisis' as in the Chinese character represents not only danger but opportunity. Mining companies in the U.S. and Canada are ramping up capacity and buying up heavily discounted mining rigs to increase their hash rates and market share of crypto mining.
Since the shutdown of China's miners, more than 54% of bitcoin's hash rate of collective computing power dropped off the network. The bitcoin code had to recalibrate by 28% to compensate and stabilize the rate of mining.
This presents another opportunity for miners to make greater profits while less competition is online.
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