News & Events

The U.S. has officially become the largest miner of Bitcoin

A huge shift away from China.

words by: Sahar Khraibani
Dec 2, 2021

For the first time, the United States has surpassed China as the most popular destination for Bitcoin miners. While it was already trending in that direction, fresh Cambridge University data solidifies this finding.

 

Moving out of China

According to the Cambridge Centre for Alternative Finance, the United States accounted for 35.4% of Bitcoin’s hashrate, meaning the collective processing power of miners, as of July. From September 2020 to September 2021, that’s a 428% increase. While China was the market leader in terms of hashrate a year ago — by a long shot, it no longer has that title. However, Beijing’s crypto crackdown in the spring effectively shut down half of the world’s Bitcoin miners.

 

Miners began abandoning China en masse, en route to the world’s cheapest energy sources, in what became known as “the great mining migration.” A large number of these ended up in the United States. China’s average monthly share of worldwide hashrate was zeroed out in July, according to recently revealed Cambridge statistics, a huge reversal from September 2020, when China held roughly 67% of the market.

 

Moving into the U.S.

London-based fintech data analyst, Boaz Sobrado, stated: “The whole narrative of China controlling Bitcoin has now been completely demolished.” For migrant Bitcoin miners looking for a new home, the United States checks a lot of boxes.

 

For one thing, areas like Texas have some of the lowest energy prices in the world, which is a big plus for miners who work in a low-margin business with energy as their only variable expense. Nuclear power has also been used by miners across the country. Some are tying their rigs to otherwise stranded resources, such as natural gas squandered in oil fields.

 

This consequently lowers greenhouse gas emissions while also generating revenue for gas producers and miners. This shift towards zero-emission and sustainable energy sources has already begun to reshape doubters’ perceptions of Bitcoin’s environmental impact.

 

“Mining is price sensitive, so it seeks out the lowest-cost power,” The CEO of Blockstream Adam Back explained. “The lowest-cost power tends to be renewable because if you’re burning fossil fuels… it has extraction, refinement, and transportation costs.”

 

In addition to cheaper electricity prices, several regions in the United States, such as Texas, have crypto-friendly lawmakers and a sufficient supply of hosting infrastructure. America’s journey to the top is definitely a case of good fortune colliding with foresight. For years, the United States has been quietly increasing its hosting capacity. Before Bitcoin miners started flocking to the United States, businesses across the country bet that if the infrastructure was in place, they would eventually set up shop here.

 

This is truly big news for the financial market of the world. Learn more about cryptocurrency.