Bitcoin Mining Update How the US Gained Dominance Over China

CoinWorld reported:
There has been a shift in Bitcoin mining, with two countries currently controlling 95% of the mining hash rate.
This concentration of power may make miners unhappy and lead to large-scale surrender.
The Bitcoin [BTC] mining landscape is changing, with US mining pools now controlling 40% of the hash power, while Chinese mining pools control 55%.
Chinese miners, who once dominated due to cheap hardware, are losing their advantage as the focus shifts towards cheap energy. This shift is driving the mining industry to move to regions with more favorable energy conditions. What impact does this have? AMBCrypto investigates.
The distribution of hash rates is too concentrated.
Previously, China had a significant influence on the mining industry, controlling around 55% of the total Bitcoin hash rate. This meant that the majority of Bitcoin mining power was concentrated in China.
This dominance gave Chinese miners an advantage in terms of staking rewards, leading to a greater accumulation of Bitcoin in the country.
Now, the US is narrowing the gap, controlling 40% of the hash pool. The focus is shifting, and Bitcoin mining companies headquartered in the US are reaping the biggest benefits, especially those catering to institutional investors.
However, this massive outflow may pose a challenge to US miners, as increased competition could weaken profits. It is crucial to closely monitor individual miners, as they may close positions if operating costs exceed profitability.
Fear is evident.
Taking advantage of the recent surge, Bitcoin miners may have capitalized on profits, with BTC consolidating above $63,000 and reaching peaks around $64,000, as evidenced by the historic low in miner reserves.
Bitcoin mining difficulty reaches a new high.
With the appearance of monthly highs, miners must seize any opportunity for an uptrend.
Additionally, the influx of US miners has raised concerns, as intensifying competition is expected to push the difficulty to a new record, ultimately reducing returns.
Therefore, miners’ surrender could severely threaten Bitcoin’s ability to reach the $68,000 resistance level.
On the other hand, this situation may highlight the dominance of large mining companies, as small-scale miners exit the market, giving them an advantage and further centralizing the network.
Bitcoin mining companies may take over.
As more miners exit due to increased difficulty, mining companies holding large amounts of Bitcoin may seek to leverage their resources and take over.
For example, the largest Bitcoin mining company in the US has strategically accumulated assets, estimated to be as high as $22,022.4 million, although the reported figure may be higher.
Reading:
Bitcoin [BTC] price predictions for 2024-25.
Furthermore, their significant holdings may provide an advantage during miners’ surrender, allowing them to absorb pressure when BTC reaches the market top.
However, the increase in centralization may pose problems for the Bitcoin mining industry, preventing Bitcoin from breaking through the critical $64,000 resistance.