China remains a significant force in Bitcoin mining, even after its 2021 ban on crypto mining. Data from CryptoQuant shows that China still holds 55% of the global Bitcoin hashrate. Although its market share has decreased as many miners relocated following the government’s crackdown, China continues to dominate the Bitcoin mining scene.
Other Countries Step Up
As China’s Bitcoin mining dominance drops, other countries are gaining ground. The U.S., Kazakhstan, and Russia have ramped up mining efforts. In an X post on Monday, Ki Young Ju, CEO of CryptoQuant, noted that U.S. mining pools are steadily rising. American miners usually operate at an institutional level, while Chinese miners work on a smaller, independent scale.
#Bitcoin hashrate dominance is shifting to U.S. mining companies.
— Ki Young Ju (@ki_young_ju) September 23, 2024
Chinese mining pools operate 55% of the network, while U.S. pools manage 40%.
U.S. pools primarily cater to institutional miners in America, while Chinese pools support relatively smaller miners in Asia. pic.twitter.com/kepopLWBSD
Formerly critical of cryptocurrencies, presidential candidate Donald Trump shifted his stance and endorsed Bitcoin. Trump has even proposed using Bitcoin to pay back part of the United States debt and has not ruled out holding BTC. This possible policy change has raised questions about whether China should reverse its position on cryptocurrency.
Global Crypto Rivalry
Tron founder Justin Sun shared his thoughts on the conflict, stating that the rivalry between China and the U.S. over Bitcoin regulation is beneficial. He believes this competition is positive for the global cryptocurrency market.
Other countries are also advancing in the cryptocurrency market in a big way. The recent move of Hong Kong’s regulator to allow trading of Bitcoin and Ethereum ETFs proves that the region remains one of the most open to digital currencies.
Russia to Tax Crypto Miners Based on Electricity ConsumptionRussia Embraces Crypto
Russia has also embraced cryptocurrencies even in the face of sanctions imposed on the country. The country has recently launched trials of cross-border crypto transactions and legalized crypto mining, a complete u-turn from the earlier ban.
Not even the small South Asian kingdom of Bhutan has been left behind, as it is reported to hold 13,011 BTC worth about $820 million. Large countries like the United States and China, as well as a small South Asian state like Bhutan, remain active in the crypto sphere. Nevertheless, the future of Bitcoin mining is still unclear and unpredictable.
