Bitcoin Mining by Country: Best Places to Mine Crypto in 2023
A glance at the state of Bitcoin mining by country indicates a change in power between multiple locations around the world. For years, China stood as the ultimate location for top crypto miners, thanks to an abundance of cheap electricity. However, when the Chinese government issued a ban on all crypto-related activities in 2021, the China Bitcoin mining space disappeared.
Fortunately for investors, other countries have emerged to take the place of the Chinese powerhouse. Locations like the United States and Kazakhstan have become particularly important to crypto miners over the last couple of years. However, the crypto mining map is likely to change again in the future, thanks to the rising costs of energy around the world.
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The Largest Bitcoin Mining Countries
Just over 2 years ago, China held more than three-quarters of the global Bitcoin hash rate at 75.5%. The ban on cryptocurrency-related activities means this country may now be missing out on over $6 billion in potential mining revenues.
Currently, the Bitcoin mining rate in the United States is the highest of any location in the world. According to the University of Cambridge, which holds a frequently-updated guide to the Bitcoin blockchain, BTC hash rate, and power consumption, the US was number one for 2021.
America holds 35.4% of the Global hash rate share as of August 2021, compared to only 4.1% in the previous year. The second largest Bitcoin mining country is currently Kazakhstan, with a hash rate of 18.1%. However, there are some concerns this may change going forward due to the introduction of a new energy crisis and a 500% tax on Bitcoin miners.
Where Is the Largest Bitcoin Mining Farm?
According to the Bitcoin mining stats recorded by the University of Cambridge, the United States currently stands as the most powerful environment for cryptocurrency and bitcoin mining. However, certain locations within the United States are more appealing to the top Bitcoin miners.
At present, Texas is one of the most impressive places for cryptocurrency miners to live in, with plenty of open land, and a de-regulated power grid. This ensures the largest Bitcoin miners in the area can negotiate power rates with different providers.
Going forward, it’s likely the locations likely to attract the most attention for crypto mining may be those with the lowest cost of energy. Libya, for instance, has a heavily state-subsidized energy landscape with a lot of self-sufficiency for energy creation. Outside of the US, Kazakhstan previously stood as the country with the second-largest Bitcoin total hashrate.
However, the status of the country’s future as an environment for Bitcoin mining distribution is uncertain following the riots of 2023. Russia is also one of the top locations for bitcoin and cryptocurrency, with 9.6% of the total global hashrate. However, there are some indications that Russia will be imposing certain bans and restrictions on cryptocurrencies going forward.
Which Country Owns the Most Bitcoin?
According to Statista, the US isn’t only the best place for Bitcoin mining by country, it also has the highest level of Bitcoin trading volume, followed by Russia and Nigeria.
America is also said to be home to the largest share of the world’s cryptocurrency. Currently, the US holds approximately 19% of the total bitcoin in circulation. If America continues to be the biggest Bitcoin mining farm going forward, there’s a good chance it will also continue to thrive with multiple Bitcoin and cryptocurrency holders. There are also more Bitcoin addresses in the US than in any other country worldwide, with 22% of all public addresses linked to America.
Looking at Bitcoin usage by country, the US also comes out on top, with more than 46 million crypto owners making up 13.74% of the population. Interestingly, the second and third countries with the highest bitcoin usage are India and Pakistan.
Where Is the Best Place to Mine Bitcoin?
Right now, the best place to create the biggest Bitcoin farm may be the United States. However, to determine the best possible location for mining bitcoin, it’s worth looking at the costs involved with mining. According to a study of 198 countries, the average cost to mine bitcoin is currently higher than the value of the coin itself at $35,404.03.
Kuwait currently ranks as the cheapest place in the Bitcoin mining pool chart, with the average cost to mine one bitcoin measuring at $1,393.95, allowing miners to gain around $19,469.74 in profit. Alternatively, Venezuela is the most expensive country for mining bitcoin, with a single bitcoin costing around $236,530.74 to mine.
The Bottom Line
Right now, looking at Bitcoin by country shows us the number one space for both mining and using Bitcoin is the United States. The US is followed by Kazakhstan, Russia, Canada, and Ireland in the University of Cambria’s top 5 list.
With global energy crises emerging in various locations around the world, however, new government strategies are being implemented by a range of different countries. According to the Bitcoin Energy Consumption Index, the energy cost to mine a single bitcoin is around 2,189 kWH and growing. This equates to around 75 days of power for an average US household.
Going forward, the Bitcoin global hashrate is likely to change again as energy prices continue to evolve and government groups initiate new policies and restrictions designed to reduce the consumption of high levels of electrical power.
