London-based digital asset supervisor CoinShares has issued a new report revealing that China controls up two-thirds (66%) of the global hash rate in the BTC network with Sichuan province alone accounting to more than 50% of the ratio, as per a report from Reuter on Dec. 11.
The “hash rate” shows the volume of computing power required to validate the Bitcoin blockchain’s transactions—a higher hash rate indicates a more secure network. Reports detailed that the global hash rate went up by 60% since June up to the present, thus showing steady growth. China now holds the title of having the highest recorded hash rate since the firm began monitoring in 2017.
CoinShare’s Chris Bendiksen says that the cause of this improvement is China’s progressive use of advanced mining equipment. Bitmain and Canaan are among the top mining hardware distributors in China. Meanwhile, Bitmain appears to be monopolizing the country’s crypto-mining marketplace as some reports say that the firm has a 75% market share worldwide—continually expanding to more regions across the globe, just recently in South America.
However, China’s dominance in the BTC network is still at risk for its current position might decline as the latest generation equipment enters the non-Chinese market. Nevertheless, the country still has a definite advantage over its rivals due to its revolutionary role and low energy charges. China already declared that BTC mining in the province of Sichuan would undergo development to pave the way for more business openings in the region based on blockchain technology.