The global landscape of Bitcoin mining is experiencing a significant transformation as U.S. mining operations rise to prominence. A recent chart shared by Ki Young Ju, the founder of CryptoQuant, illustrates this shift, depicting the geographical distribution of Bitcoin mining pools from 2015 to 2024. It clearly shows a transition of mining power from China to the United States, while other nations play a relatively minor role.
### Decline of Chinese Mining Pools
According to Ju’s chart, Chinese mining pools dominated the Bitcoin network from 2015 to 2021, controlling nearly all of its hashrate. This period of Chinese supremacy is evident on the chart as a vast red area, indicating a near-monopoly held by miners in China.
Despite China still holding a considerable share of 55% today, its dominance has been steadily waning since 2020. This decline began when the Chinese government enforced regulatory changes affecting the crypto-mining industry, leading many operations to relocate overseas.
### Rise of U.S. Mining Pools
In the wake of China’s regulatory crackdown, U.S. mining pools have rapidly expanded, now accounting for 40% of the Bitcoin network’s hashrate. The U.S. saw a significant increase in its mining share starting in mid-2021, largely due to the influx of Chinese miners seeking more favorable conditions.
The chart’s blue section, representing U.S. mining pools, indicates consistent growth, underscoring the rising influence of American institutional miners. This represents a dramatic shift, as the U.S. had a minimal footprint in the mining sector prior to 2021.
### Energy Use and Emerging Mining Markets
The increase in U.S. mining activity has also implications for energy consumption. A report from the U.S. Energy Information Administration (EIA) revealed that Bitcoin mining accounted for between 0.6% and 2.3% of the total energy demand in the U.S. in 2023.
This electricity consumption is comparable to the annual energy use of several states, such as Utah and West Virginia, and serves the needs of three to six million households.
While the U.S. continues to expand its mining operations, other regions like Russia are also making regulatory advancements. In August, Russian President Vladimir Putin enacted a law that recognizes cryptocurrency mining as a legitimate business, thus establishing a formal framework for mining activities within the country.
### Disclaimer
This article is intended for informational purposes only and should not be interpreted as financial advice. The opinions expressed herein may reflect the author’s personal views and do not necessarily represent the stance of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions. The Crypto Basic does not assume responsibility for any financial losses.
