After China’s Ban, Here Are The Top 5 Bitcoin Mining Countries
The crackdown on Bitcoin mining and other cryptocurrency activities in China has left a significant mark on the entire blockchain and cryptocurrency industry. China used to be the global Bitcoin mining hub, with over 65% of the global hashrate emanating from within the country. Things have changed in the past year, as the clampdown by Beijing and the subsequent enforcement have changed the dynamics of the industry.
China noted energy concerns and the inability to maintain substantial oversight on cryptocurrency activities as the main reasons for its stand on cryptocurrency. As a result, several cryptocurrency practitioners, especially Bitcoin miners were forced to either shut down the firms or relocate to more friendly regions. This left a vacuum that was bound to be filled, and indeed, other regions have risen to the occasion to become hosts to either the relocating miners or entirely new entrants.
Officially, Bitcoin mining activities became extinct in China one year after the ban, with the region’s hashrate dropping to zero. However, underground mining by practitioners who have found ways to elude the eyes of the government has been reported, showing that some level of Bitcoin mining is still going on in the region. Nevertheless, strict rules have been put in place to punish anyone found to be engaging in Bitcoin mining or other kinds of crypto activities.
While China’s situation persists, other parts of the world have risen to take over flagship positions in Bitcoin mining. Countries with more tolerant legislation towards crypto, in addition to a favorable climate, are making their marks in Bitcoin mining. Underlisted are the top 5 Bitcoin mining countries of the world, one year after China left the scene.
The trajectory of Bitcoin mining in the United States of America has been in an upward direction. Even before the clampdown in China, Bitcoin miners were already finding locations in the North American country. Things jumped shortly after the Chinese ban in 2021. The country’s pre-2021 global Bitcoin hashrate ratio remained below 10%. After the ban, it jumped above 10% and has never looked back. As of the time of writing, the Bitcoin hashrate ratio of the United States is about 35.4%.
Next to the United States is Kazakhstan with a current global Bitcoin hashrate ratio of 18.1%. Similar to the U.S., Kazakhstan’s Bitcoin hashrate ratio was below 10% until after China stepped aside. The pattern of Kazakhstan’s Bitcoin hashrate growth suggests that a significant amount of the hashrate that left China found its way to the country. Between June and July 2021, Kazakhstan’s global Bitcoin hashrate ratio jumped from 8.8% to 13.79%, kicking off an era of significant growth.
Russia’s focus on internal systems may have played a role in the recent surge in crypto activities in the country. Faced with a situation where most international relationships have been severed, Russia is adopting seemingly unconventional systems to sustain its sovereignty. This may include a more relaxed approach toward the regulation of crypto activities.
As of January 2022, the global Bitcoin hashrate percentage out of Russia stood at 4.66%. Seven months later, this has risen to 11.23%, leapfrogging Canada into the third position in the process. This season coincides with the period that Russia’s war with Ukraine has lasted. Perhaps Bitcoin is serving as an alternative financial vehicle in the country.
Although Canada has always maintained a friendly approach towards the cryptocurrency industry, Bitcoin mining wasn’t common there until China’s crackdown happened.
Before 2021, the Bitcoin hashrate out of Canada was less than 2% of the total global hashrate. However, after the ban by China, Bitcoin mining activities skyrocketed in Canada. By July 2021, Canada’s global Bitcoin hashrate ratio climbed to 10.83%. This has been maintained with minor fluctuations along the way with the current hashrate standing at 9.55%.
Ireland is another country that is claiming the Bitcoin mining industry. Until September 2020, no significant hashrate was recorded from Ireland. Today, the country stands fifth in line in terms of global Bitcoin hashrate. A significant climb was observed in July 2021, shortly after China banned Bitcoin and cryptocurrency. Ever since Bitcoin mining activities have been steady in the country.
With a global hashrate ratio of 4.68%, Ireland retains the fifth country with the highest Bitcoin mining hashrate as of the time of writing.