It has been a phenomenal year for cryptocurrencies, where higher price surges, new variations of tokens, including the surge of stable coins & NFTs, have contributed to its adoption into the mainstream. Bitcoin, also known as the king of cryptocurrencies, did watch itself through new peaks of all-time highs. However, the crypto king has ended the year on lower levels similar to Feb 2021.
Although BTC has doubled in price since 2020, thereby appealing to various investors and the asset class, it has also allowed various mining companies around the globe to seize the moment while setting up businesses in various countries that offer better conditions for the mining of cryptocurrencies.
However, it isn’t very easy to analyze where Bitcoin has been mined the most since mining cryptocurrencies is a partially private activity. Currently, the only way to view insights on the same is through reading & interpreting hash rate data of the token. By looking at the hash rates, it is easier to determine the higher ASIC processing power of a targeted geographic, which means more mining activity.
The data is provided & accumulated by the Cambridge Bitcoin Electricity Index (CBEI). However, it is clarified that the data provided is exclusively based on a sample collected from geolocated BTC mining facilities, in conjunction with other various mining pools.
The red dragon country under the CCP had been the topmost miner in regards to Bitcoin
From 2019 till late 2021, responsible for 75.5% of all mining activity in the world.
However, due to the crackdown of the sector & imposition of a blanket ban on all cryptocurrencies in the second half of 2021, China lost its distinction from the US.
United States of America
The impact of the Chinese crackdown led to the mass exodus of miners. Data from Cambridge Center Alternative Finance (CCAF) interprets that the United States has absorbed most of the miners who left China after the crackdown. Currently, the United States holds 35% of the total hash rate generated worldwide, While Texas, in particular, has the potential to become the world capital of Bitcoin.
The country shares its borders along with China & Russia, which led to miners moving into the country & setting their farms into the lands of Kazakhstan. The country’s national energy demand grew more than its estimates from 2%-3% to a rampant 8%. Currently, Kazakhstan contributes 18% of the total hash rate & happens to be the second-largest miner after the US.
Russia is currently a booming marketplace where it contributes 11.23% of the total global hash rate while being the 3rd most significant contributor. The lower house of the Russian parliament also proposed to consider the mining as an entrepreneurial activity. However, the uncertainty seems to be growing among the Russian crypto-centric businesses as the Russian central bank governor remarked her skeptical views against cryptocurrencies.
The kindest people in the world contribute 9.5% of the global hash rate, where they stand the 4th most significant contributor to the index. Due to its abundance of energy resources, the city of Quebec has attracted many mining businesses.
The southeast Asian country witnessed its maximum growth in 2021. The country has also benefited from china’s exodus, where it has been offered some cheaper mining equipment while the Chinese try to unload all of their facilities. Malaysia contributes 4.5% of the total hash rate.
Europe’s largest economy & a country of brilliant car manufactures, Germany contributes 4.4% of the global hash rate, according to the CCAF data. However, according to Cambridge, the recent increase of the hash rate could be the result of a VPN network or proxy servers used by miners throughout the world, considering the sky-high tax rates in the country imposed on mining businesses.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.