Top 10 countries in Bitcoin computing power (with list)

Authors: Chris Dickert, Voronoi, Visualcapitalist, Compiler: Song Xue, Golden Finance

Bitcoin mining consumes an estimated 348 TWh of electricity per year, and as the world increasingly shifts to renewable energy, some have asked the question: Where exactly does Bitcoin get its electricity from?

! [t8pvGu8Ixe6MePcaflAxbclB2Mu1tAXk3NjQap4q.jpeg] 7115067 https://img-cdn.gateio.im/webp-social/moments-40baef27dd-bbdbd86492-dd1a6f-cd5cc0.webp To answer this question, we’ve partnered with HIVE Digital to conduct a survey of Ember, a Cambridge alternative finance centre and climate-oriented energy think tank to study the power structure of the Bitcoin network.

This is the first installment of our “How Green Is Bitcoin?” series, which explores the sustainability of cryptocurrencies.

Top 10 countries in terms of Bitcoin computing power

The top 10 countries for Bitcoin mining account for 93.8% of the hashrate of the entire Bitcoin network in terms of hashrate (a measure of computing power), with the United States, China, and Kazakhstan ranking among the top three. By the end of 2021, the three countries together hosted nearly three-quarters of the network’s computing power.

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Source: Hash rate (%): Cambridge Alternative Finance Centre, as of December 2021; Renewable Energy (%) Ember, as of 2022.

China once held the top spot for Bitcoin mining, accounting for 75% of global production capacity, but the crackdown in the summer of 2021 caused its share to drop to zero in just a few months. Many miners relocated to nearby Kazakhstan, attracted by cheap electricity, loose regulation, and a “stable” political atmosphere, while others chose the United States. After the dust settled, large-scale clandestine mines also appeared in China.

Rounding out the top 10 are Ireland, Singapore and Thailand, which together account for 4.9% of the network’s computing power. Ireland’s reported share – which also applies to sixth-placed Germany – is considered grossly exaggerated because miners from other countries hide their true location.

Role of Renewable Energy

Nationally, the share of renewable energy in the United States, China and Kazakhstan is 22.5%, 30.2% and 11.3%, respectively. For context, renewables will account for 30% of global electricity generation by 2022 (excluding nuclear power).

Kazakhstan’s dismal share of renewables is due to its heavy reliance on coal (60%), which is also the Central Asian country’s main export. Meanwhile, coal generates a similar amount of electricity in China (61%), but has a higher share of overall renewables due to the rapid expansion of wind and solar.

Ho Wagons?

(“Wagons Ho” is a traditional slogan, often associated with the era of western exploration and exploration.) This phrase is used to encourage the drivers of ox carts or horse-drawn carts to move forward, especially when they are trekking through difficult land or traversing undeveloped areas. This slogan means forward, keep going, and is often used to encourage large-scale travel or exploration. ）

The location where Bitcoin miners set up their farms is important because, unlike many other industries that have factories or large headquarters, they are mobile.

Their location is based on factors such as the regulatory regime, electricity prices, and since Bitcoin devices generate a lot of heat, the average outdoor temperature needs to be taken into account. Regarding the last point, here are the top 10 by average annual temperature:

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However, as climate change drives the development of renewable energy, many Bitcoin miners are paying closer attention to where their electricity comes from. This may be the reason why Canada is rich in hydroelectric resources, rising from less than 1% in 2019 to 6.5% at the end of 2021.

But considering that top renewable energy countries such as Iceland, Paraguay, and Norway together account for just over one percent of the global network, there is still plenty of room for growth in mining.