October 24, 2021

Taylor Daily Press

Complete News World

China is the largest producer of bitcoin in the United States after the collapse of the crypto market

China is the largest producer of bitcoin in the United States after the collapse of the crypto market


Photo: ANP

The United States has seized from China the largest “producer” of bitcoins. Previously, powerful computer systems in the Asian country contained most of the Bitcoins added worldwide. But the Chinese government is increasingly suppressing the crypto market, which means that according to the Cambridge Center for Alternative Finance, the country rarely contributes to cryptocurrencies globally.

Like other cryptocurrencies, bitcoins are traded through a blockchain, a kind of decentralized order book that is updated everywhere at once. With each addition anywhere in the network, a complex mathematical formula must be solved. The winner will receive a bitcoin as a reward. This is called “mining” or mining bitcoins.

Entrepreneurs around the world use specialized computer systems day and night to calculate bitcoins. The largest miners were in China, where they used the low cost of large-scale electricity needed to mine bitcoins. But this year, the People’s Republic is working on banning bitcoin and related activities. For example, the provinces announced a ban and the authorities increased their controls.

The struggle against Chinese miners is bearing fruit. According to the Cambridge Center for Alternative Finance, in September 2019, China accounted for 75 percent of all computing power used globally for bitcoin mining. The U.S. stock rose 35.4 percent, doubling since April.

Chinese miners may still be active in their country, but are hiding behind protected virtual private networks (VPNs). They make computer systems look like they are elsewhere. According to researchers, the recent increase in computer power for bitcoins in Germany and Ireland is the result of VPNs from bitcoin miners.

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