Crypto

Foundry USA Becomes Second-Largest Bitcoin Mining Pool

Foundry USA Becomes Second-Largest Bitcoin Mining Pool

Foundry USA, situated in New York, contributed 15.42% of the network hash rate and is only 4,000 PH/s behind AntPool.

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.

The growth in American participation can be ascribed to China’s recent blanket ban on cryptocurrency trade and mining. The restriction prompted a mass exodus of local Bitcoin miners, who now reside in crypto-friendly nations such as the United States, Russia, and Kazakhstan.

According to https://t.co/1YRYr4QCmY (https://t.co/1YRYr4QCmY),

Foundry, a mining pool owned by DCG, is now the second-largest Bitcoin mining pool. The main causes are China’s harsh crackdown on Bitcoin mining and the relocation of the mining sector to the United States. https://t.co/VjtWgD9Hsp pic.twitter.com/XK9Y19QDrg

November 20, 2021 — Wu Blockchain (@WuBlockchain)

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. In terms of crypto ATM distribution, American enterprises have also filled up the slack left by China.

According to Coin ATM Radar statistics, Georgia’s Bitcoin Depot has surpassed its Chinese competitors to become the world’s largest crypto ATM operator. Surprisingly, American companies manage the bulk of crypto ATMs, a pattern that has become more prevalent since China’s preemptive restriction on crypto operations.

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Despite its stated intention to develop an in-house central bank digital currency (CBDC), the Chinese Communist Party sought public input on the Bitcoin mining ban on Oct. 21, sparking discussions over the government’s negative stance on Bitcoin and cryptocurrency mining.

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 the Bitcoin mining hash rate two decades ago, but by April 2021, it had dropped to 46%, just before the cryptocurrency prohibition.

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, as well as a request 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.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.