After China’s Crypto Ban, Who Leads in Bitcoin Mining?
The following content is sponsored by Global X ETFs.
The Briefing
- China issued a ban on all crypto activities in September 2021
- As a result, the U.S. has greatly increased its share of global Bitcoin hash rate
Bitcoin Mining Moves to America
Bitcoin mining is a process that verifies transactions on the blockchain ledger, while also bringing new bitcoins into circulation.
To be successful at this, cryptominers require vast amounts of computing power, meaning electricity becomes one of their most significant costs. This pushes them to locate wherever electricity is cheapest.
For years, China was the optimal location—the country has an abundance of cheap, coal-powered electricity. However, in September 2021, the Chinese government issued a blanket ban on all crypto activities.
In this graphic sponsored by Global X ETFs, we illustrate a movement that’s being dubbed “the great mining migration”.
Bitcoin Hashrate by Country
The University of Cambridge maintains various datasets on the Bitcoin blockchain, including power consumption and hash rate. Global hash rate measures the total computational power that is dedicated to mining.
The table below shows a breakdown of global hashrate by country.
| Country | Share of Global Hash rate as of September 2019 (%) | Share of Global Hash rate as of August 2021 (%) |
|---|---|---|
| 🇺🇸 U.S. | 4.1% | 35.4% |
| 🇰🇿 Kazakhstan | 1.4% | 18.1% |
| 🌎 Other | 6.1% | 13.5% |
| 🇷🇺 Russia | 5.9% | 11.2% |
| 🇨🇦 Canada | 1.1% | 9.6% |
| 🇲🇾 Malaysia | 3.3% | 4.6% |
| 🇩🇪 Germany | 0.9% | 4.5% |
| 🇮🇷 Iran | 1.7% | 3.1% |
| 🇨🇳 China | 75.5% | 0.0% |
This data shows us how dramatic the shift has been. Just two years ago, China accounted for over three quarters of global Bitcoin hashrate. The country is now expected to miss out on $6 billion in annual cryptomining revenues.
The New Bitcoin Capital of the World
So why are cryptominers choosing the U.S. as their new home? For starters, America offers a greater level of relative stability.
If you’re looking to relocate hundreds of millions of dollars of miners out of China, you want to make sure you have geographic, political, and jurisdictional stability.
– Darin Feinstein, Founder, Core Scientific
Within the U.S., Texas is one of the hottest spots for cryptominers to relocate. The state not only has plenty of open land, but also a deregulated power grid. This allows cryptominers to negotiate rates with different power providers and sign longer-term contracts.
According to Square, cryptomining has environmental benefits, too. The financial services company believes that bitcoin mining is in fact a complementary technology for clean energy production and storage.
Source: University of Cambridge
-
Datastream10 months agoCan You Calculate Your Daily Carbon Footprint?
Discover how the average person's carbon footprint impacts the environment and learn how carbon credits can offset your carbon footprint.
-
Datastream11 months agoThe 10 Longest Range EVs for 2023
This infographic lists 10 of the longest range EVs currently for sale in the U.S. in 2023. The Lucid Air takes first place at 516 miles.
-
Economy11 months agoCharted: Public Trust in the Federal Reserve
Public trust in the Federal Reserve chair has hit its lowest point in 20 years. Get the details in this infographic.
-
Datastream12 months agoHow Gen Z Feels About Its Financial Future
Despite the looming uncertainty, members of Gen Z maintains an optimistic outlook about their financial future
-
Datastream1 year agoMore U.S. Tech Companies are Adopting Unequal Dual-Class Voting Structures
Dual-class share structures are rising in popularity, and they give executives much more voting power within a public company.
-
Datastream1 year agoThe Link Between Entrepreneurship and Mental Health Conditions
Research explores the link between entrepreneurship and mental health conditions such as ADHD and bipolar disorder
