China’s share of cryptocurrency mining has declined markedly, as the government has been adamant in curbing cryptocurrency mining, citing environmental concerns. The average BTC mining rate in the country fell by 75%. On the contrary, Kazakhstan proved to be a promising destination for miners, and these activities climbed to a remarkable 8.2% from the previous value of 1.4%.
The research also highlights energy consumption for cryptocurrency mining, and China reportedly used less than 46% of its energy extraction in April before the first steps.
BTC mining rate in China fell by 75%
Kazakhstan is becoming the third most important miner with a six-fold increase in mining transactions. According to the report, Chinese anti-crypto behavior has forced the government to limit its mining activities, which has caused the country to register a significant decline in crypto transactions. On the other hand, Kazakhstan has successfully seized the opportunity and increased its mining activities to an impressive 8.2% from an average of 1.4%. The US maintains second place in the cryptocurrency index, while Russia and Iran currently hold fourth and fifth positions in global BTC mining.
BTC mining is essentially a highly intensive process that requires a significant amount of energy to verify crypto transactions. A number of complex mathematical algorithms need to be solved in order for the crypto transaction to be verified and implemented as legitimate and without external interference. Mining also ensures that miners who have spent their time verifying these transactions can obtain BTC once the transaction is successfully verified at the end.
While China has consistently sought to curb cryptocurrency mining in the region, authorities have previously warned miners to find an alternative because mining in the region will be suspended indefinitely. This could be one of the reasons that forced Chinese miners to seek refuge in Kazakhstan, the former Soviet republic, leading miners to use the region’s natural energy reserves of coal and gas without interruption. Kazakhstan produces 22 gigawatts of electricity, which is quite enough to carry out mining operations in the country.
The Chinese authorities are trying to reduce existing crypto activities, citing growing environmental concerns that lead to high carbon emissions in the region. On the other hand, this restriction forced the miners to move to Kazakhstan and carry out their cryptocurrency activities without any pressure or growing problems and to make profits by mining and verifying crypto transactions.