Good day everyone,
I hope you are all well are having an excellent day, welcome to CryptoGod-1’s blog on all things crypto. Today I will be looking at some statistics in terms of Bitcoin mining rates around the world, and which nations are the most popular in terms of mining hashrate locations.
The process of mining Bitcoin involves solving extremely complicated math problems that verify transactions in the currency, while at the same time creating a block reward which distributes new Bitcoin. This predetermined block reward has changed over the years, currently sitting at 6.25 Bitcoin. The competition for mining is fierce, with the value of a single Bitcoin so high it can make mining very lucrative. This results in many computers being used, often combined in their efforts, to win the race and win the block reward. The next halving is expected to occur in April or May 2024, when the block reward will fall to 3.125, and by the year 2140 the block reward will hit 0 as the number of bitcoins circulating will reach the maximum supply of 21 million.1
Up until around July 2021, China was the go to place and undisputed world leader in Bitcoin mining. Its share of the Bitcoin mining market was around 75 back in late 2019, with no country capable of rivalling its market share. However, in July 2021 when the Chinese Government announced a ban on Bitcoin mining in the nation, the Chinese market rate dropped to 0%. Since then the United States have emerged as the global leader in terms of Bitcoin mining, with around 33% completed with the nation. Below is an image from Statista showing the breakdown of major Bitcoin mining hashrate nations from September 2019 until January 2022.
It has not always been the case that the United States was the most popular place in terms of mining. In fact, China was the global leader for a long time, until the government once again banned cryptocurrencies and mining. Below, thanks to the Cambridge Bitcoin Electricity Consumption Index, I have put together a couple of snippets of how the levels of Bitcoin mining have changed around the world. The data available was from September 2019 until January 2022.
From the beginning of the data, it is clear that China was the world leader in terms of Bitcoin hashrate, with over three quarters being created in their nation. With 75.53%, there was no competitions, as the United States in comparison had only 4.06%.
In January 2020 China had slipped down to 72.69%, but the United states had also lost rough half a % in terms of their global hashrate. The rest of the world was slowly increasing their level of hashrate, but none were making any serious inroads. Africa did see more countries getting involved in Bitcoin mining, while the likes of Europa and South America remained at the same levels.
The summer of 2020 saw even more of the Chinese dominance diminish, with the United States reaching a solid 5.09% level and the Chinese falling down to 66.86%. While China dropped from having three quarters to about two thirds over the course of nine months, they were still very much the global leaders and in a category of their own. Other nations in Africa and South America were seeing their numbers drop in terms of global hashrate.
Six months later, in January 2021, China had lost even more of their global dominance as the United States had doubled their levels of Bitcoin hashrate. China was down to 53.3%, while the United States at 10.55%. The landscape was become more even, but Africa and South America were sitting at levels to the previous moths, while in Europe Germany and Ireland were emerging as main players in the Bitcoin mining space.
In the summer of 2021 the global dominance of Bitcoin hashrate changed, as the Chinese ban had rocked the market. The United States became the new leader, with a solid figure of 35.12%, with China sitting at 0%. South America, Europe, Australian, and Africa all benefitted from this ban as their levels global hashrate all increased.
By January 2022 China were back in the game, although nowhere near their previous dominant levels. At 21.11%, they were lagging behind the United States, who lead the way with 37.84% of the global hashrate. Canada, Germany, Ireland, Kazakhstan, Iran, Malaysia, and Russia are all the remaining big players in the space. I expect countries in Africa and South America will grow their level further over the coming years, but for now it is still the United States and China who lead the way.
Below is a graphic showing a breakdown of how Bitcoin mining was spread out across the United States back in December of 2021, highlighting which areas were the most popular. Today it is likely that an area such as Texas would be even more popular, and likely the leader in terms of Bitcoin mining in the United States.
So there we have it, the global dominance of Bitcoin mining hashrate. China were once the undisputed leaders, but had since fallen behind the United States. Plenty of other countries are poised to take advantage of any further
Have a great day.
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