Chinese BTC Miners Extend Their Share Of Global Hashrate To Two-Thirds

The Chinese BTC miners are now controlling two-thirds of the global hash rate or Bitcoin processing power. According to the Reuters reports, a further explanation of the research by CoinShares was provided and we are reading further in today’s Bitcoin latest news.

The report shows that the Chinese BTC miners control 66 percent of Bitcoin’s hash rate and this means they control the bitcoin-related computing power that allows the production of new coins. The share of the hash rate increased from 60percent in June which is the highest increase since CoinShare started tracking the measure back in 2017. Chris Bendiksen, the head of research at Coinshare, says that the gain could be correlated by the Chinese miners’ use of the new and sophisticated mining equipment.

The major companies based in China such as Bitmain and MicroBT, are among the top producers of mining equipment such as ASICs. Canaan, for example, is the second-largest producer of Bitcoin mining equipment and it even conducted a $90 million initial public offering suggesting that the investors increased their interest in mining. Bendiksen explained:

‘’This is beneficial to the Chinese mining industry. If you are the first to increase your proportion of the hashrate, and you can do that before your competitors, that’s generally good.’’

The Chinese manufacturers of Bitcoin mining gear are looking to expand their presence even further. Bitmain even announced that they made a new partnership with the crypto mining consultants Bit5ive and Fastblock in order to expand in South America. What is even more interesting, the global hash rate of 80 percent of the Chinese hash rate is based in Sichuan which is the Southwestern region. The other major mining centers are provinces such as Inner Mongolia, Xinjiang, and Yunnan.

Also, back in September, the authorities in the autonomous region of Inner Mongolia, required from the local crypto mining companies to halt all operations. The crypto commentators were extremely concerned about the start of the general trend in China cracks down on mining-related activities. However, this was not the case since China turned into a major supporter of Blockchain technology as president Xi Jinping urged the country to start embracing the technology instantly.