After China’s Crypto Ban, Who Leads in Bitcoin Mining?



The following content is sponsored by Global X.

 

Global X BKCH ETF

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, 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.

CountryShare of Global Hash rate
as of September 2019 (%)
Share of Global Hash rate
as of August 2021 (%)
?? U.S.4.1%35.4%
?? Kazakhstan1.4%18.1%
? Other6.1%13.5%
?? Russia5.9%11.2%
?? Canada1.1%9.6%
?? Malaysia3.3%4.6%
?? Germany0.9%4.5%
?? Iran1.7%3.1%
?? China75.5%0.0%

This data shows us how dramatic the shift has been. Just two years ago, China accounted for (Read more...)