It's been almost half a year since China's crackdown on the apex cryptocurrency Bitcoin, which caused the global cryptocurrency markets to crash violently.
According to the CFAF index, the global hash rate of Bitcoin fell 50% during the May crash, with the price of Bitcoin (BTC) slashed in half from the previous height of $64,000 to a low of $28,000. The alternative cryptocurrency, Ether (ETH), along with other "altcoins," all followed the price movements of Bitcoin, with a lot of them crashing even more violently than Bitcoin itself.
Since May, the global crypto market has rebounded and is back up higher, with the crypto giants Bitcoin and Ether hitting all-time highs and altcoins like Shiba Inu, impressing traders with a monthly gain of more than 700%.
This crypto crash and rebound also altered where proof of work cryptocurrencies, like Bitcoin, are mined. Before the crash of May, China accounted for over 50% of the global mining hash rate of Bitcoin. Following the national ban, Chinese contributions to the worldwide mining hash rate for Bitcoin now account for 0-1%, with some underground illegal mining operations still operating in the mainland.
What China has so flagrantly given away, the United States and Russia can thankfully take from China's hands. According to recent statistical data taken from the CFAF index, United States mining operations now account for 35% of the global mining hash rate, effectively replacing China in the number one place. The mining hash rate was absorbed and taken by crypto-friendly nations, such as Russia, Kazakhstan, and Malaysia.
The Chinese ban on Bitcoin and the broader cryptocurrency market has effectively spread the global mining hash rate into different nations, a stark contrast to when Chinese mining operations controlled 50% of the Bitcoin global mining hash rate. Although the prominence of U.S. mining operations has led to Bitcoin becoming more centralized and dependent on the United States, the Chinese ban on bitcoin has allowed smaller nations, like Malaysia and Kazakhstan, to take a more significant piece of the mining hash rate pie.
As Bitcoin continues to hit new highs and institutional implementation in crypto grows, it would not be surprising to see China reverse its anti-Bitcoin stance and start to adopt cryptocurrencies. The United States and Russia are making monumental progress with integrating crypto into modern-day, contemporary life, and it's only a matter of time before Bitcoin becomes welcomed into open arms by China.