Crypto Mining Moves from China to U.S., Faces Hurdles

China's Rise and Fall in Cryptocurrency Mining

Cryptocurrencies had a golden period in China, which led the world in Bitcoin mining due to its low energy costs and supportive regulations. By 2021, China managed about 70% of global cryptocurrency mining activities. In 2019, China's leader, Xi Jinping, encouraged the use of blockchain technology, further cementing the country's dominance. However, in May 2021, China banned cryptocurrency mining and transactions, citing concerns over criminal activities such as money laundering and potential threats to the financial system. This led to the industry's collapse in China.