Cambridge’s study reveals how China’s anti-crypto stance has made the country fall back by 75% in their mining activities, while Kazakhstan has emerged as the third leading contender for crypto mining services.
China’s share in crypto mining has registered a noticeable fall as the nation has been adamant about suppressing crypto transactions citing environmental concerns. The nation’s average bitcoin mining rate has fallen by 75%. On the contrary, Kazakhstan has emerged as a promising crypto contender with their increased mining activities climbing to a striking 8.2% from a basic value of 1.4%.
The research published highlights the power usage consumption to mine crypto in which China is said to have utilized less than 46% of mining power in April before the crackdown was imposed.
Kazakhstan Becomes the Third-Leading Crypto Miner with Six-Fold Increase in Mining Transactions
According to the report published by Cambridge, China’s anti-crypto behavior has compelled the nation into cutting back its mining activity which has made the country register a striking descent in crypto transactions. Kazakhstan on the other hand has successfully utilized the crypto authority and has increased its mining activities to an impressive 8.2% from an average of 1.4%. USA maintains the second spot on the crypto mining index, while Russia and Iran are currently holding fourth and fifth positions in the global BTC mining.
Bitcoin mining in its essence is a highly intensive process where it takes a substantial amount of energy to validate crypto transactions to facilitate transactions in the region. To validate these dealings, a range of complex mathematical algorithms are needed to be solved to verify and validate the crypto transaction as legitimate and free from external interference. Mining also ensures that the miners who have dedicated their time in validating these transactions can get bitcoin once the transaction has been successfully verified by them in the end.
While China has been persistent about reducing crypto transactions in the region, the authorities had previously warned the budding miners to find an alternative as crypto proceedings will be suspended in the region for an indefinite period. This might be the one of reasons which propelled the Chinese miners to seek refuge in Kazakhstan, a former Soviet republic, which resulted in miners utilizing the region’s natural energy reserves of coal and gas to mine crypto in an untroubled manner. Kazakhstan produces 22 gigawatts of electric energy which is fairly enough to conduct mining operations in the country.
Chinese authorities have been clamping down on existing crypto activities citing growing environmental concerns that have been driving the region’s carbon emissions to soar high. On the other hand, this clampdown has made miners flock to Kazakhstan and conduct their crypto activities without any pressure or growing issues and earn profits and gains via mining and validating crypto transactions.
Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.
