Bitcoin Hashrate Top Ten Countries Ranking List (with Chart)

Top 10 Countries with the Highest Bitcoin Hashrate (including Chart)

Author: Chris Dickert, Voronoi, Visualcapitalist; Translation: Songxue, LianGuai

BitcoinMining is estimated to consume 348 terawatt-hours of electricity annually. As the world increasingly shifts towards renewable energy, some people have raised the question: where does Bitcoin get its power from?

To answer this question, we teamed up with HIVE Digital to visualize data from the Cambridge Centre for Alternative Finance and Ember, a climate-focused energy think tank, to study the power structure of the Bitcoin network.

• Trash to Treasure: Bitcoin Mining Saves the Environment, One Landfill at a Time
• Bullish Reversal Brewing? Bitcoin Price Predictions Unveiled with Release of US Core Inflation Data!
• BlackRock: Reshaping Bitcoin or Breaking It?

This is the first part of our “How Environmentally Friendly is Bitcoin?” series, which explores the sustainability of cryptocurrencies.

Top 10 Countries by Bitcoin Hashrate

Based on hashrate (a measure of computational power), the top 10 countries in terms of Bitcoin mining account for 93.8% of the total network hashrate, with the United States, China, and Kazakhstan ranking in the top three. As of the end of 2021, these three countries collectively hosted nearly three-quarters of the network hashrate.

Data sources: Hashrate (%): Cambridge Centre for Alternative Finance, as of December 2021; Renewable Energy (%): Ember, as of 2022.

China once held the dominant position in Bitcoin mining, accounting for 75% of global capacity. However, a crackdown in the summer of 2021 caused its share to plummet to zero within a few months. Many miners relocated to neighboring Kazakhstan, attracted by cheap electricity, relaxed regulations, and a “stable” political atmosphere, while others chose the United States. After the dust settled, China also saw the emergence of large-scale secret mining farms.

Rounding out the bottom of the top 10 are Ireland, Singapore, and Thailand, which collectively account for 4.9% of the network hashrate. The reported shares by Ireland – and also applicable to Germany, ranking sixth – are considered to be significantly exaggerated as miners from other countries hide their true locations.

The Role of Renewable Energy

On a national scale, the shares of renewable energy in the United States, China, and Kazakhstan are 22.5%, 30.2%, and 11.3%, respectively. In terms of context, renewable energy is projected to account for 30% of global electricity generation by 2022 (excluding nuclear power).

The dismal share of renewable energy in Kazakhstan is due to its heavy reliance on coal (60%), which is also the country’s main export product. Meanwhile, coal’s electricity generation in China is similar (61%), but its overall share of renewable energy is higher due to the rapid expansion of wind and solar power.

Wagons Ho?

(Note: “Wagons Ho” is a traditional slogan usually associated with the Wild West and exploration. This phrase is used to encourage wagon or carriage drivers to keep moving, especially when trekking through difficult terrain or crossing undeveloped areas. It signifies progress and moving forward, often used to inspire large-scale travels or adventures.)

The location of Bitcoin mining farms is crucial because, unlike many other industries with factories or large headquarters, they are mobile.

Their choice of location is based on regulatory systems, electricity prices, and considering the average outdoor temperature, as Bitcoin mining equipment generates a significant amount of heat. Regarding the latter point, here are the top 10 cases divided by average annual temperatures:

However, with climate change driving the development of renewable energy, many Bitcoin miners are increasingly concerned about where their electricity comes from. This could be why Canada, with its abundant hydroelectric resources, has seen its ranking rise from less than 1% in 2019 to 6.5% at the end of 2021.

Considering that top renewable energy countries like Iceland, Paraguay, and Norway collectively account for just over 1% of the global network, there is still significant room for growth in mining.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!