Foundry USA, a crypto-mining service provider based in New York, has taken over as the world’s second-largest Bitcoin (BTC) mining pool, with a 15.42 percent share of the network.
According to data from BTC.com, Digital Currency Group-owned Foundry USA trails pool leader AntPool by only 4,000 PH/s, contributing to a 17.76 percent network share at the time of writing.
We can ascribe the growth in American participation to China’s recent blanket ban on cryptocurrency trade and mining. The restriction prompted a mass exodus of local Bitcoin miners. Most of who now reside in crypto-friendly nations such as the United States, Russia, and Kazakhstan.
Foundry USA has the highest average transaction fees among the top five mining pools in terms of hash rate distribution; at 0.09418116 BTC (almost $5,500) every block. American enterprises have also noticed China’s lag in distributing cryptocurrency ATMs.
According to coin ATM radar data, the Georgia-based Bitcoin Depot has surpassed its Chinese counterparts to become the world’s largest crypto ATM operator. Surprisingly, American companies manage the bulk of crypto ATMs. This is a trend that has become more prevalent since China’s preemptive restriction on crypto operations.
The Chinese Communist Party sought public input on the Bitcoin mining ban on Oct. 21. This sparked discussions over the government’s negative stance on Bitcoin and cryptocurrency mining. However, China has stated its intention to develop an in-house central bank digital currency (CBDC).
China’s contribution to the Bitcoin mining hash rate, on the other hand, has been steadily declining since September 2019; According to Statista data. China accounted for almost 75% of Bitcoin mining hash rate two decades ago. Yet by April 2021, it had dropped to 46%, just before the cryptocurrency prohibition.
China Ban of Bitcoin Mining
China intensified its crackdown on cryptocurrency, declaring all cryptocurrency-related financial transactions unlawful. The nation imposed a nationwide ban on cryptocurrency mining; citing energy-intensive processes in which large computer networks compete for newly produced crypto tokens.
On the announcement, Bitcoin, the world’s most popular cryptocurrency, fell by 7%, to roughly $41,100, but rebounded considerably later.
China’s crackdown came as the country’s central bank is putting its own digital currency, the electronic Chinese yuan, to the test. The central bank published a notification specifically mentioning Bitcoin and Ether, the two most popular cryptocurrencies, as being issued by “non-monetary entities.”
New Requirements
As the United States moves closer to mass usage of Bitcoin, regulators are seeking clarification on the Biden administration’s new reporting requirements.
Members of the Republic and Democratic parties have made multiple requests to change the crypto tax reporting regulations. They have also made an appeal to redefine the term “broker” in cryptocurrency transactions.
The bipartisan infrastructure bill compels individuals to report digital asset transactions worth more than $10,000 to the Internal Revenue Service beginning in 2024. Brokers are now defined in the bill as miners and validators, hardware and software developers, and protocol developers.