Thursday, December 9

BTC digital mining is rapidly decentralizing

BTC’s digital mining business continues on the path of decentralization, which began this year 2021. What began as fears and insecurities, ends up becoming one of the best things that has happened to the business.

When China jumped into action and banned the mining business out of the major provinces, many were alarmed. And it was not for less, the Asian country housed 65% of the global hash power of the most important cryptocurrency in market valuation. Removing that amount of hashing power would have many implications that could be classified as negative and dangerous.

However, the reality was another. As massive disconnections occurred and the Bitcoin hashrate plummeted, this was an encouragement for miners residing outside of China. The fall of the hash, proportionally caused the decrease in difficulty. In simple words, mining was more profitable, which is why dozens of miners around the world started to do it.

The decentralization process of BTC digital mining

The instant digital mining became easier, Bitcoin miners around the world seized the opportunity to start or power their farms. The result is that the hashrate began to recover rapidly. In just a few months, the computing power of the Bitcoin Blockchain network is getting close to its all-time highs.

The important thing about this fact is that, when the hashing power recovers, the business does not return to its previous quality. On the contrary, it is placed on a higher level thanks to decentralization. Thus, the hashrate is the same as before, but it is not concentrated in one place.

The United States now becomes the epicenter of mining, with an approximate 35% of network computing power. Other regions of Asia, Latin America and even Africa, are beginning to become more protagonists. A business more spread throughout the world, means more strength in the face of pirate attacks against the network and with the pretense of controlling governments.

With the strength that the digital mining business now acquires, BTC becomes more relevant to people. Centralized entities, if they intend to combat it, will have more challenges than the many they had before this decentralization process.

The accelerated recovery of the BTC hashrate represents the decentralized growth of digital mining in the world.  Source: Coinwarz
The accelerated recovery of the BTC hashrate represents the decentralized growth of digital mining in the world. Source: Coinwarz

North America on the world top

One of the most important meters of Bitcoin mining, the Center for Alternative Finance at the University of Cambridge (CBECI), presents important data. In these, North America is presented as the area with the highest concentration of computing power in this business.

Counting the United States and Canada, these two nations account for 44.95% of all global hashrate. Other nations that command the board are Russia and Kazakhstan, which represent the Eurasian region. Between these two countries, they concentrate 29.33% of the global hash.

It should be noted that these numbers could vary since there is no data on digital mining of BTC in China. Although the business was strictly prohibited, as was the cryptocurrency trade, it is believed that thousands of machines continue to operate clandestinely in that country.

Be that as it may, mining is still in the process of decentralization. However, some analysts fear that in the medium term there will be a similar concentration in the United States. Regardless of the transparency of that country compared to China, the centralization of the business could never be classified as good.