In June 2021 the Chinese government announced a complete ban on cryptocurrency services and mining in the country. After that news, the Chinese government has taken strict action and as the result, the mining companies started shifting their operations to other countries like the United States and Africa.
While the United States has extended its leading position as the dominant location for BTC mining, China is making a comeback in Bitcoin mining and has become the second-largest country in the world for crypto mining despite the government Ban.
Tuesday a report has been released by Cambridge Centre for Alternative Finance (CCAF) and according to this report the United States accounted for 37.84% of global hashrate (a measure of computing power used to extract the digital currency) between September 2021 to January 2022. In Bitcoin mining, the hashrate is also responsible for securing the Bitcoin network, which is now at new highs after a huge fall from last year.
According to the CCAF report in China hashrate has increased to 21.11% which makes it the second-largest mining country and this sudden surge in mining activities has increased through “covert mining operations”.
What are Covert Mining Operations?
Covert Mining is defined as an unauthorized or illegal harnessing of the victim’s computational resources to mine cryptocurrencies. Nowadays this is one of the prevalent ways used by cybercriminals to earn financial benefits from mining. These activities also result in financial losses to the victims.
CCAF said in its report, “This strongly suggests that significant underground mining activity has formed in the country, which empirically confirms what industry insiders have long been assuming”.
CCAF publishes its reports based on aggregate geolocation data given by partner mining pools and this report may prone to errors because many crypto miners use VPN services to hide their identity.
According to CCAF’s mining map, Kazakhstan was the third country with hashrate of 13.22%, Canada was fourth with hashrate of 6.48%, Russia has a 4.66% hashrate and India has a 0.03% average monthly hashrate share.