According to Luxor Technology’s latest study, the top 3 largest Bitcoin (BTC) mining countries account for over 65% of market share. Who are the industry leaders?
What are the largest Bitcoin mining countries?
On Monday, Luxor Technology’s Hashrate Index website released its latest update of the “global hashrate heatmap,” allowing for the geographic distribution of computational power deployed on the Bitcoin (BTC) blockchain to be determined:
Without much surprise, the United States comes out on top, with a top 10 formation as follows:
- United States: 37.4% (~375 EH/s)
- Russia: 16.9% (~170 EH/s)
- China: 12.0% (~120 EH/s)
- Paraguay: 4.3% (~43 EH/s)
- United Arab Emirates: 3.0% (~30 EH/s)
- Oman: 3.0% (~30 EH/s)
- Canada: 2.6% (~26 EH/s)
- Ethiopia: 2.5% (~25 EH/s)
- Kazakhstan: 1.8% (~18 EH/s)
- Indonesia: 1.8% (~18 EH/s)
Together, the top 3 countries represent approximately 65% of the global hashrate, raising questions about decentralization. However, such centralization, while important to consider, is less problematic than on a Proof-of-Stake (PoS) blockchain. Miners focus on finding the hash of the latest new block, while nodes enforce the rules of the game. The decentralization of nodes is crucial, as they have a major impact on Bitcoin’s operation, where miners mainly affect block production speed and mining difficulty.
A notable example in 2021 was the global reshuffling following China’s ban, causing a collapse in hashrate. The impact of VPNs should also be acknowledged, as miners may not be accurately located based on their IP address.
Moreover, the global hashrate has decreased by 5.8% since the beginning of the year, dropping from 1,066 EH/s to 1,004 EH/s.
Although some countries contribute minimally to the overall computational power, their growth rates are impressive. For instance, Pakistan now has 4 EH/s, marking a 1,233% growth in a year, while Bolivia surged by 2,400%.
In the United States, the hashrate reached 375 EH/s, growing by 39% in a year. Meanwhile, Paraguay in South America holds 4.3% of global computing power, with a 54% increase. Argentina’s neighboring country disconnected machines equivalent to 43%. France only represents 0.047% market share with 0.5 EH/s.
Simultaneously, BTC is priced at $68,354, down by 1.8% in the last 24 hours.
Source: Hashrate Index
