China has been the world leader in Bitcoin mining for some years. The dominance was such that Bitcoin’s detractors never missed an occasion to criticise Bitcoin by claiming that its Hash power was centralised, which they claimed was a big flaw.
Furthermore, the fact that China dominated Bitcoin’s hash power to such an extent raised serious concerns about the cryptocurrency’s environmental impact.
Then, in May 2021, China decided to tighten its Bitcoin ban even further. This resulted in a large exodus of Bitcoin miners from China to the West
Prior to the Chinese authorities’ decision, China accounted for 46 percent of the global hash rate on the Bitcoin network. This was already a significant decline in its market share from 2019, when it peaked at 75% in September of that year.
Faced with the central government’s decision in Beijing, five Chinese provinces promptly shut down Bitcoin mining operations. Inner Mongolia, Xinjiang, Qinghai, Yunnan, and Sichuan are among them.
This caused the Bitcoin hash rate to collapse, further instilling anxiety in the market and pushing the Bitcoin price crash in May 2021.
For the first time since the introduction of ASICs in 2013, the Bitcoin mining industry is in search of a new region of worldwide supremacy. And it appears that North America will continue to dominate Bitcoin mining in the future.
Several American companies that have been betting on greener Bitcoin mining for months would benefit greatly from China’s exit.
The first is Marathon Patent Group, which is already the most profitable Bitcoin miner in the United States. For several months, the business has progressively increased its ASIC arsenal. Marathon has also stated that it intends to generate Bitcoin in accordance with the anti-money laundering rules of the Office of Foreign Asset Control (OFAC).
Marathon’s decision has naturally sparked outrage among the rest of the Bitcoin community, since it would result in two forms of Bitcoin: Bitcoin that is clean in America’s eyes, and Bitcoin that is obtained from other miners across the world.
Aside from this programme, Marathon is dedicated to reaching carbon neutrality at its Texas location. The new 300-megawatt mining facility will hold 73,000 ASICs. The plant is planned to be operational in the first quarter of 2022, with a hash rate of 10.4 EH/s and an initial carbon neutrality of 70%.