EU Report Reveals Bitcoin Mining Shift from China to the US

January 1, 2024 William Ross Cryptocurrency News 0

False Alarm Sends Bitcoin Markets Reeling

The United States has emerged as the undisputed leader in Bitcoin mining, overtaking China’s long-held dominance, according to a recent report. The U.S. now controls a staggering 38% of the global Bitcoin hashrate, the computing power used to mine new bitcoins, compared to China’s 21%.

China downtrend

This dramatic shift is attributed to China’s crackdown on cryptocurrency mining in May 2021, which forced many mining operations to shut down or relocate. The U.S., with its abundant cheap energy and supportive regulations, has become a magnet for these displaced miners.

According to the latest Bankless Times report on bitcoin mining the US has increased its share of the Bitcoin mining hashrate from 4.1% in April 2020 to 35.4% in August 2021, surpassing China, which saw its share drop from 65.1% to 18.5% in the same period. This is mainly due to the Chinese government’s crackdown on cryptocurrency mining, which forced many miners to relocate or shut down their operations.

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Bitcoin mining hierarchy

Following the U.S. in the hashrate race are Kazakhstan (13%), Canada (7%), and Russia (5%). Notably, the European Union, despite its economic prowess, holds a mere 6% of the hashrate, reports News.bitcoin.com. However, analysts believe the EU has the potential to become a major player in Bitcoin mining due to its abundant renewable energy resources and growing awareness of the environmental impact of traditional mining methods.

The report highlights several challenges that EU miners face, including a lack of specialized infrastructure and regulatory uncertainty. However, it also points to initiatives like the EU’s plans to classify Bitcoin mining as a green industry, which could provide a significant boost to the sector.

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William Ross
About William Ross 277 Articles
I am a cryptocurrency enthusiast and writer with over five years of experience in the industry. I have been following the development and innovation of Bitcoin and Ethereum since their inception, and I enjoy sharing my insights and analysis with readers. I have written for various reputable platforms, such as CoinDesk, Cointelegraph, and Decrypt, covering topics such as market trends, regulation, security, and adoption. I believe that cryptocurrency is the future of finance and technology, and I am passionate about educating and informing people about its benefits and challenges.