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
-
Datastream1 week agoTop 20 Countries With the Most Ultra-Wealthy Individuals
Developing countries are creating wealth like never before, but the majority of the world's ultra-wealthy people still live in the United States.
-
Datastream4 weeks agoRanked: The Top Cyberattacks Against Businesses
Recent research provides insight into the top cyberattacks that businesses faced in 2021. See the results in this infographic.
-
Datastream1 month agoThe Biggest Corporate Hacks of 2021
2021 saw an alarming rise in the frequency and sophistication of corporate hacks. View this infographic to learn more.
-
Datastream3 months agoAWS: Powering the Internet and Amazon’s Profits
Amazon is best known for its sprawling ecommerce empire, but three-quarters of the company's profits actually come from cloud computing.
-
Datastream4 months agoRanked: These Are 10 of the World’s Least Affordable Housing Markets
An analysis of 90+ major cities reveals which ones are the least affordable housing markets based on their price-to-income ratio.
-
Datastream4 months agoPoll: Inflation is the Top Financial Concern for Americans
Many Americans are feeling the sting of inflation as everyday items like food and fuel have seen big price increases.
