Which country produces the most Bitcoin in the world?
The countries that mine the most Bitcoin in the world have been identified based on hash rates, which measure the performance of high-capacity hardware used in cryptocurrency mining.
By analyzing the hash rate and Bitcoin production rates, the top Bitcoin-producing countries have been determined. According to data compiled by WorldPopulationReview, the United States leads as the top Bitcoin miner, accounting for 37.84% of global production, followed by China and Kazakhstan.
“Until the crypto mining ban in 2021, China was the leading Bitcoin producing country with a 75% production rate.
Despite losing its top position to the USA due to this ban, China still remains second on the list of the world’s top Bitcoin producers.”
Access to equipment is easy in the USA, coal is cheap in Kazakhstan
China, viewing Bitcoin mining as a threat to its economy, imposed a ban in 2021. According to Cambridge University data, China’s Bitcoin production, once the primary source of global supply, dropped to zero in July-August 2021. However, clandestine mining activities in China resumed from September 2021. Research from the Cambridge Centre for Alternative Finance indicates that China still represents over 22% of the total Bitcoin mining market.
He noted the contrasting stance of the US, where mining is seen as a legal activity. He mentioned, “In the USA, there are Bitcoin mining companies that are publicly traded. Setting up the necessary infrastructure for Bitcoin mining is easier in the United States, and the country provides the required tools and support for miners.”
In Kazakhstan, the availability of cheap electricity, predominantly produced from coal, has made it an appealing location for miners, especially those relocating from China. Kazakhstan, with a 19% share in the mining sector and a population of 7 million, heavily relies on fossil fuels for its energy capacity.
Bitcoin is still made with fossil fuels!
He pointed out, “Countries like Iceland, Paraguay, and Norway meet almost all their energy needs from renewable sources. Yet, their contribution to the total Bitcoin supply doesn’t exceed 1.1%, raising sustainability concerns.”
It’s estimated that Bitcoin mining consumes about 348 terawatt-hours of energy annually. In a time when the impacts of climate change are increasingly discussed, the reliance of the largest cryptocurrency by market value on fossil fuels might pose a barrier to transitioning towards a green economy.
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