Chinese Bitcoin mining pools withdraw, US computing power increases to 40

The global Bitcoin mining landscape is changing significantly, with U.S. mining companies gaining an advantage.
A chart recently shared by CryptoQuant founder Ki Young Ju highlights this evolution. Chart showing the geographical distribution of Bitcoin mining pools from 2015 to 2024. It illustrates how mining power has recently shifted from China to the United States, with other countries playing a minor role.
The decline of Chinese mining pools
As can be seen from Young Ju’s chart, from 2015 to 2021, Chinese mining pools dominated and controlled almost all of the Bitcoin network’s computing power. This era of Chinese monopoly is clearly visible on the chart as a broad red area, indicating that Chinese miners have almost cornered the market.
Although China still holds a significant share of 55% today, its dominance has gradually declined since 2020. The decline began when the Chinese government implemented regulatory changes to the crypto mining industry, prompting many operators to relocate abroad.
The rise of US mining pools
Amid China’s regulatory crackdown, U.S. mining pools have begun to expand rapidly and currently account for 40% of the Bitcoin network’s computing power. The United States’ mining share has grown significantly since mid-2021 as Chinese miners migrate in search of more favorable conditions.
The blue area on the chart, representing U.S. mining pools, shows steady growth, highlighting the growing influence of U.S. institutional miners. The growth marks a dramatic shift, as the United States was virtually nonexistent in the mining industry before 2021.
Energy Use and the Emerging Mining Market
The surge in mining activity in the United States has also affected energy consumption. A report from the U.S. Energy Information Administration (EIA) revealed that Bitcoin mining will account for 0.6% to 2.3% of total U.S. energy demand in 2023.
This electricity usage is comparable to the annual electricity consumption of several states, including Utah and West Virginia, and is equivalent to the needs of three to six million homes.
While the United States continues to grow, other regions, such as Russia, are also making regulatory progress. In August, Russian President Vladimir Putin signed a law making cryptocurrency mining a legal business, establishing a formal framework for mining activities in the country.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.