Home News Foundry USA becomes second-largest Bitcoin mining pool amid China ban

Foundry USA becomes second-largest Bitcoin mining pool amid China ban

324
0

Foundry USA, a crypto-mining service provider located in New York, has taken the lead as the world’s second-largest Bitcoin (BTC) mining pool, with a 15.42% share of the network.

According to BTC.com, Digital Currency Group-owned Foundry USA trails pool leader AntPool by only 4,000 PH/s, contributing to a 17.76% network share at the time of publishing.

China’s recent sweeping ban on crypto trading and mining activity is to blame for the increase in American participation. The restriction compelled a large-scale exodus of local Bitcoin miners to crypto-friendly nations. Such as the United States, Russia, and Kazakhstan.

Foundry USA charges the highest average transaction fees, at 0.09418116 BTC (almost $5,500) for each block. Out of the top five mining pools in terms of hash rate distribution. In terms of crypto ATM distribution, American corporations have also taken up China’s slack.

The Georgia-based Bitcoin Depot has surpassed its Chinese competitors. To become the world’s largest crypto ATM operator, according to Coin ATM Radar statistics. Surprisingly, the bulk of crypto ATM operators are American firms, a trend that has accelerated since China’s preemptive restriction on crypto activity.

The government’s unfavourable position on Bitcoin and cryptocurrency mining

Despite its stated intention to develop a central bank digital currency (CBDC), the Chinese Communist Party polled the public on the Bitcoin mining ban on Oct. 21, sparking discussions over the government’s unfavourable position on Bitcoin and cryptocurrency mining.

Statista data, on the other hand, shows that China’s contribution to the Bitcoin hash rate has been steadily decreasing since September 2019. China accounted for almost 75% of Bitcoin mining hash rate two decades ago. But that figure had dropped to 46% by April 2021, just before the cryptocurrency prohibition.

The United States moves closer to widespread Bitcoin usage. Hence, authorities are seeking clarification on the Biden administration’s new reporting requirements.

Members of the Republican and Democratic parties have made many requests to change the crypto tax reporting regulations. As well as a request to redefine the term “broker” in cryptocurrency transactions.

The bipartisan infrastructure bill compels everyone to report digital asset transactions worth more than $10,000 to the Internal Revenue Service starting in 2024. Brokers are now defined under the law as miners and validators, hardware and software developers, and protocol creators.

Previous article3 reasons why Bitcoin’s (BTC) drop to $56.5K may have been the local bottom
Next articleBack-to-back all-time highs from AVAX, ENJ and EGLD suggest it’s ‘altseason’