Bitcoin computing power top ten countries ranking (attached list)

Bitcoin mining consumes an estimated 348 terawatt hours of electricity each year, and as the world increasingly turns to renewable energy, some have raised the question: where exactly does Bitcoin get its power from?

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

This is the first in our How Green is Bitcoin? series, which explores the sustainability of cryptocurrencies.

Top 10 Bitcoin Hashrate Countries

The top 10 countries in Bitcoin mining by hashrate (a measure of computing power) account for 93.8% of the entire Bitcoin network’s hashrate, with the United States, China, and Kazakhstan in the top three. As of the end of 2021, these three countries together hosted nearly three-quarters of the network’s hashrate.

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

China once dominated Bitcoin mining, accounting for 75% of global capacity, but a crackdown in the summer of 2021 caused its share to fall to zero in just a few months. Many miners relocated to nearby Kazakhstan, attracted by cheap electricity, loose regulations and a "stable" political atmosphere, while others chose the United States. After the dust settled, large-scale secret mining farms also emerged in China.

Rounding out the top 10 are Ireland, Singapore, and Thailand, which together account for 4.9% of the network’s hashrate. Ireland’s reported share – which also applies to Germany, which ranks sixth – is believed to be significantly inflated, as miners in other countries hide their true location.

The role of renewable energy

Nationally, the United States, China and Kazakhstan have renewable energy shares of 22.5%, 30.2% and 11.3%, respectively. For context, renewable energy will account for 30% of global electricity generation by 2022 (excluding nuclear power).

Kazakhstan’s dismal renewables share is due to its heavy reliance on coal (60%), which is also the Central Asian country’s main export. Meanwhile, coal accounts for a similar amount of electricity generation in China (61%), but its overall renewables share is higher due to the rapid expansion of wind and solar.

Wagons Ho?

(Golden Finance Note: "Wagons Ho" is a traditional slogan often associated with the Western pioneering era and exploration. The phrase was used to encourage drivers of ox carts or horse-drawn wagons to move forward, especially when they were trekking over difficult land or through undeveloped areas. The slogan means to move forward and keep moving forward, and is often used to encourage large-scale travel or exploration.)

Where bitcoin miners set up their mines is important because, unlike many other industries that have factories or large headquarters, they are mobile.

Their location selection is based on factors such as regulation, electricity prices, and, since Bitcoin equipment generates a lot of heat, the average outdoor temperature needs to be considered. Regarding the last point, here are the top 10 locations by average annual temperature:

However, as climate change drives the development of renewable energy, many Bitcoin miners are paying closer attention to where their electricity comes from. That’s probably why Canada’s abundant hydroelectric resources have risen from less than 1% in 2019 to 6.5% by the end of 2021.

But there’s still plenty of room for growth in mining, considering that top renewable energy countries like Iceland, Paraguay, and Norway together account for just over one percent of the global network.