China’s bitcoin miners now control two-thirds of the crypto network’s processing power, research showed on Wednesday, a growing share that is likely to benefit the country’s miners, reported the South China Morning Post.
Miners in China control 66% of global “hashrate,” a measure of the power of computers hooked up to the bitcoin network that dictates their ability to produce new coins, according to a report by digital asset manager CoinShares.
The Chinese share of hashrate, up from 60% in June, is the highest recorded by CoinShares since it began tracking hashrate nearly two years ago. The gains may be due to their greater deployment of more advanced mining gear, said Chris Bendiksen, the firm’s head of research.
At bitcoin’s current price of around $7,200 per “coin”, miners produce bitcoin worth around $4.7 billion every year. “This is beneficial to the Chinese mining industry,” said Bendiksen. “If you are the first to increase your proportion of the hashrate, and you can do that before your competitors, that’s generally good.”