US Becomes Largest Bitcoin Mining Hub After China’s Miner Exodus

Bitcoin China Mining Russia USA
Last updated:
Author
Author
Fredrik Vold
About Author

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: AdobeStock/alexlmx

Following China’s crackdown on Bitcoin (BTC) mining earlier this year, the US has officially become the largest Bitcoin mining hub, followed by Kazakhstan and Russia, researchers at Cambridge University have found. 

With a global hashrate (or computational power of the network) share of 35.4% as of the end of August, the US is now home to the largest share of Bitcoin hash power in the world, Michel Rauchs, Digital Assets Lead at the Cambridge Center for Alternative Finance (CCAF), wrote in a blog post published on Cambridge University’s website today. However, they stressed that “every model is an incomplete representation of reality that relies on specific assumptions, some of which may be debatable.”

In either case, the finding is based on data from the university’s own Bitcoin Electricity Consumption Index, which also shows how other countries, including Kazakhstan, Russia, Ireland and Canada, have grown their respective shares at China’s expense.

Source: Cambridge Bitcoin Electricity Consumption Index

The author said the updated data confirms the trajectory from the previous update (as of the end of April), which showed that the US, Kazakhstan, and Russia were already gaining market share ahead of the crackdown in China.

“The immediate effect of the government-mandated ban on crypto mining in China was a 38% drop in global network hashrate in June 2021 – which corresponds roughly to China’s share of hashrate before the clampdown, suggesting that Chinese miners ceased operations simultaneously,” the post said.

It added that “declared mining operations” in China are effectively at zero now, dropping from a high of 75.53% of the world’s total Bitcoin mining in September 2019.

The fourth largest hashrate share is Canada (9.55%), followed by Ireland (4.68%), Malaysia (4.59%), Germany (4.48%), Iran (3.11%), and Norway (0.58%). These are then followed by “a long tail of countries,” Rauchs further said, adding that the effect of China’s ban is “an increased geographic distribution of hashrate across the world.”

However, Rauchs noted that the most likely reason for Germany and Ireland to be on the list is that some miners may be using virtual private networks (VPNs) or proxy servers, given that “there is little or no evidence” of any large-scale mining operations there.

VPNs and proxy servers are tools that can be used to route traffic through other countries, effectively concealing the real location of a miner. The article did not say, however, whether some of the miners using servers in other countries could in reality be based in China.

In addition to the top countries for Bitcoin mining listed in the blog post, data from the Bitcoin Electricity Consumption Index has also been used to generate an up-to-date Bitcoin mining map detailing the share of Bitcoin’s hashrate in all countries around the world.

Dark colors indicate a higher share of the bitcoin hashrate. Source: Cambridge Bitcoin Electricity Consumption Index

____

Learn more:
China’s Global Bitcoin Hashrate Was On Decline Before Crackdown
China Goes After Camouflaged Crypto Miners Ahead of Winter Season

BTC Mining Migration, Challenges & Forecasts for the Post-crackdown Industry 
China Ready to Get Tough with Crypto Crackdown Enforcement

Dominated by Institutions, Bitcoin Mining is also Possible from Home
Bitcoin Miners, Take Notice – Biden’s Plan Would Remake the US Electricity System

More Articles

Bitcoin News
Price Correction on the Cards: Bitcoin Demand and Liquidity Remain Weak: CryptoQuant
Tanzeel Akhtar
Tanzeel Akhtar
2025-02-19 23:04:38
Blockchain News
Nigeria Sues Binance for $79.51B in Economic Damages, Seeks $2B in Back Taxes
Hassan Shittu
Hassan Shittu
2025-02-19 22:33:27
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors