Bitcoin mining has undergone a thrilling transformation, and the global hashrate distribution—the very backbone of this digital gold rush—is sparking intense discussions. This year, we’re witnessing extraordinary shifts driven by growing geopolitical dynamics, economic currents, and cutting-edge technologies.
Join us as we look into the fascinating evolution of global hashrate distribution, discover its implications for Bitcoin’s future, and highlight why this matters for miners and investors alike. Get ready to find the forces shaping the future of cryptocurrency.
Read Also: The Rise of Decentralized Finance (Defi)
Key Takeaways:
- The U.S. now leads Bitcoin mining with 40% of the global hashrate thanks to favorable regulations and renewable energy.
- Kazakhstan holds 14% due to cheap energy, while Canada is leading in sustainable mining with 9% from hydroelectric power.
- The migration of miners from China has made the Bitcoin network more decentralized and secure.
- Expect more focus on sustainability, potentially stricter regulations, and innovative technologies to keep reshaping the mining landscape.
What is Hashrate and Why Does it Matter?
Before we take a look at the numbers, it’s essential to understand what hashrate means. Hashrate measures the computational power used in Bitcoin mining. The higher the hashrate, the more secure the network is against attacks.
Such as the infamous 51% attack, where one entity controls the majority of the network’s computing power. Hashrate is also a measure of how decentralized the network is, something critical for Bitcoin’s resilience.
The Global Hashrate Distribution in 2024
In 2021, Bitcoin mining was dominated by China. However, a government ban on mining in mid-2021 forced miners to relocate, causing a seismic shift in global hashrate distribution.
Fast forward to 2024, and the picture has changed dramatically. Here’s a look at how the global Bitcoin mining landscape breaks down this year:
| Country/Region | Percentage of Global Hashrate |
| United States | 35.4% |
| Kazakhstan | 14.8% |
| China | 12% |
| Canada | 9.6% |
| Russia | 4.7% |
| Malaysia | 3.2% |
| Germany | 2.8% |
| Iran | 2.3% |
| Others | 7.1% |
1. The USA: A Mining Superpower
The United States continues to lead in global hashrate, holding a commanding 35% share of the network. Several factors have contributed to this growth, including:
- Crypto-friendly regulations: States like Texas and Wyoming offer tax incentives and a welcoming regulatory environment for mining operations.
- Abundant renewable energy: Miners in the U.S. have taken advantage of cheap, renewable energy sources, particularly wind and solar power, to reduce operational costs.
2. Kazakhstan: A Rising Mining Hub
Despite political and regulatory challenges, Kazakhstan remains a key player, maintaining 14% of the global hashrate. Its abundance of cheap fossil fuels and low electricity costs have attracted miners who relocated from China post-2021.
However, ongoing debates around energy consumption and carbon emissions have led to concerns over the long-term sustainability of mining in the country.
3. China: Still a Key Player
Even after its 2021 ban, China still holds a significant share of the global hashrate at 12%. How is that possible? While large-scale mining operations have largely relocated, some underground and smaller-scale operations continue to run, making China an unexpected but persistent player in Bitcoin mining.
4. Canada: The Green Mining Pioneer
Canada is well-known for its focus on sustainability, and its mining industry is no different. With 9% of the hashrate, Canada has emerged as a leader in “green mining,” utilizing hydroelectric power to run its operations. This shift towards eco-friendly mining could set a trend for other countries in the years to come.
5. Russia and Germany: Growing Yet Facing Challenges
Russia and Germany also contribute to Bitcoin mining, respectively holding 7% and 4% of the global hashrate. Russia benefits from its vast energy resources, while Germany has tapped into renewable energy solutions. However, both countries face regulatory scrutiny that could impact their future roles in Bitcoin mining.
The Great Mining Migration
The “Great Mining Migration” initiated in 2021 has led to a more decentralized and diversified hashrate distribution in 2024. This migration was fueled by China’s crackdown on mining operations, driving miners to relocate to countries like the USA, Kazakhstan, and Canada.
The decentralization of mining is seen as a positive step for Bitcoin’s long-term security, making the network less vulnerable to centralization risks.
Why Hashrate Distribution Matters for Bitcoin's Future
- Security and Stability
- A more evenly distributed hashrate makes the Bitcoin network more secure. In 2024, no single country holds more than 40% of the network’s hashrate, reducing the risk of a 51% attack, where one entity or country could control the network.
- Energy Consumption
- Mining is energy-intensive, and where mining operations are located affects the global energy market. With more miners turning to renewable sources like hydro and wind, as seen in the U.S. and Canada, Bitcoin’s environmental impact may be less severe than critics claim.
- Regulatory Impact
- As Bitcoin becomes more mainstream, regulations will continue to shape the mining landscape. Countries like Kazakhstan and Russia face regulatory hurdles that could lead to further shifts in hashrate distribution.
Meanwhile, given its favorable policies, the U.S. seems poised to continue dominating the space.
Looking Ahead: What Could Change in 2025?
As we look ahead, several trends may influence future hashrate distribution:
- Increased Focus on Sustainability: Following Canada’s lead, more countries may adopt green mining practices, as environmental concerns become more pressing.
- Stricter Regulations: As mining grows, governments may introduce stricter regulations, which could force miners to relocate once again.
- Technological Innovations: New hardware or energy-efficient solutions could disrupt the current distribution, making mining more accessible to smaller countries or even individual miners.
See Also: How to Get a Bitcoin Wallet Address
Conclusion
In 2024, the global hashrate distribution shows a more decentralized and competitive landscape, with countries like the USA, Kazakhstan, and Canada leading the charge.
The migration of miners following China’s ban has reshaped the industry, creating opportunities for countries with cheap, renewable energy and favourable regulations.
As Bitcoin continues to grow, understanding hashrate distribution will be key to predicting future trends and developments in crypto. Bitcoin mining has never been more dynamic, and 2024 marks the beginning of a new era for how—and where—Bitcoin is mined.
FAQs for Hashrate Distribution
In 2024, profitability in Bitcoin mining has been challenged, especially following the halving. ASIC miners, like the popular S19j Pro, have seen historic low margins, becoming unprofitable if electricity costs exceed $0.06 per kWh.
Mining a bitcoin currently costs around $10,000 to $15,000, with predictions suggesting these costs could rise to as much as $40,000 following the 2024 halving event.
Mara operates a fleet of approximately 250,000 Bitcoin miners, with a capacity of 31.5 EH/s. Based on the manufacturer’s specifications, they achieved a peak overall hashrate of 28.3 EH/s in June of 2024.
The Bitmain Antminer S21 Hyd 335T is currently the most profitable Bitcoin mining machine, followed by the Canaan Avalon Made A1266, and MicroBit Whatsminer M50S.
Bitcoin's price predictions for 2024 suggest a potential low of $30,225, with the possibility of reaching up to $51,438.
