The countries leading in Bitcoin mining globally have been identified through hash rates, indicators of the performance capabilities of the high-capacity hardware employed in cryptocurrency mining.
By examining hash rate metrics and Bitcoin production figures, the foremost Bitcoin-producing countries have been pinpointed. Data gathered by WorldPopulationReview shows that the United States is at the forefront of Bitcoin mining, contributing to 37.84% of the world’s production, with China and Kazakhstan following closely behind.
Before the 2021 cryptocurrency mining ban, China dominated as the top Bitcoin producer, commanding a 75% share of global production.
Although it relinquished its premier position to the USA following this ban, China continues to hold the second spot among the world’s leading Bitcoin producers.
Access to equipment is easy in the USA, coal is cheap in Kazakhstan
China, perceiving Bitcoin mining as a risk to its economy, implemented a ban in 2021. Data from Cambridge University reveals that, following the ban, China’s contribution to global Bitcoin production plummeted to zero during July-August 2021. Despite this, clandestine mining operations in China resumed from September 2021 onwards. Research from the Cambridge Centre for Alternative Finance suggests that China still accounts for over 22% of the total Bitcoin mining market.
The situation in the US is markedly different, where mining is recognized as a legitimate activity. “In the USA, there are Bitcoin mining companies that are publicly traded. Establishing the infrastructure required for Bitcoin mining is more straightforward in the United States, offering the necessary tools and support for miners,” he observed.
In Kazakhstan, the presence of inexpensive electricity, primarily sourced from coal, has positioned it as an attractive destination for miners, notably those moving from China. Holding a 19% share in the mining sector and with a population of 7 million, Kazakhstan predominantly depends on fossil fuels for its energy needs.
Bitcoin is still made with fossil fuels!
He highlighted, “Countries such as Iceland, Paraguay, and Norway nearly fulfill all their energy requirements using renewable sources. However, their combined contribution to the global Bitcoin supply does not surpass 1.1%, which raises questions regarding sustainability.”
Bitcoin mining is estimated to consume about 348 terawatt-hours of energy every year. At a time when the consequences of climate change are a growing concern, the dependence of the largest cryptocurrency by market value on fossil fuels could hinder the transition towards a more sustainable, green economy.
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