According to Ki Young Ju, Bitcoin mining activities are increasingly moving to the United States, although Chinese miners continue to hold a significant share. In a post on X, Ju, who is the founder of the cryptocurrency analytics platform CryptoQuant, points out that U.S. mining pools are beginning to capture more market share, as reflected in the Bitcoin hash rate data.
Bitcoin Hashrate Transitioning to the US Post-China Ban
As of September 23, Chinese Bitcoin mining pools were responsible for 55% of the total Bitcoin hash rates. Conversely, those in the United States controlled 40%. Collectively, these two nations account for 95% of all Bitcoin mining activities—a significant vulnerability to the blockchain’s operational integrity and security.
Bitcoin operates thanks to a decentralized network of miners who typically direct their computational power (hash rate) to a pool to compete for block rewards. These miners incur expenses for equipment and operational costs.
To incentivize miners, the network allocates 3.125 BTC along with the respective block fees approximately every 10 minutes to the successful mining pool or individual. This mechanism helps ensure the network remains secure and ostensibly decentralized.
Recent trends reveal that the transition in hash rate control correlates with the Chinese government’s crackdown on crypto mining that began in May 2021. The government cited multiple reasons for this ban.
Specifically, they claimed that the rise of crypto complicated their efforts to combat financial crimes and manage capital outflows. Additionally, they asserted that cryptocurrency could jeopardize economic stability.
As a result, many Chinese miners had to shut down their operations and migrate elsewhere, predominantly to the United States and Kazakhstan. While some limited mining efforts continue in China, the favorable regulations and pro-crypto environment have led to a surge in crypto mining within the U.S.
Supportive Policy, Donald Trump Advocates for Crypto Mining
Importantly, Bitcoin mining in the United States has become institutionalized. Prominent public crypto mining companies that mine thousands of BTC annually include Marathon Digital and Riot Platforms.
Additionally, more independent miners are opting to join U.S.-based mining pools. Data from Mempool.space indicates that Foundry USA is the largest mining pool, responsible for over 30% of the total hash rate.
In June, Donald Trump, the Republican presidential candidate, met with executives from the crypto mining sector in Florida. During this private meeting, Trump reportedly expressed that his future administration would advocate for equitable treatment of the industry.
Feature image from Canva, chart from TradingView
