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 hours ago
Super-Sized Bets for Football’s Big Game (2013-2022)
Expanding legalization has driven an increase in bets on football's big game, with wagers more than doubling from 2021 to 2022. (Sponsored Content)
-
Datastream3 days ago
Ranked: The Top Online Music Services in the U.S. by Monthly Users
This graphic shows the percentage of Americans that are monthly music listeners for each service. Which online music service is most popular?
-
Datastream2 months ago
Charted: The Ukraine War Civilian Death Toll
Using data from the UN, this chart shows civilian death toll figures resulting from Russia's invasion of Ukraine.
-
Datastream2 months ago
The Future Value of Disruptive Materials
Disruptive materials are key inputs in emerging, next-generation technologies. See how the forecasted market value for these materials is expected to surge by billions in the...
-
Datastream2 months ago
Which Countries Believe WWIII is Coming?
In every single country surveyed, the majority of respondents believed a global conflict would break out between superpowers in coming years
-
Datastream2 months ago
What Does 30 Years of Global Deforestation Look Like?
Deforestation over the last 30 years has led to a 177.5 million hectare reduction in world’s forests. See why these trends need to reverse swiftly in...