New Report: 50% of World’s Bitcoin Mined in China, 14% in the U.S.

New Report: 50% of World’s Bitcoin Mined in China, 14% in the U.S.

Only around half (50%) of the world’s Bitcoin (BTC) is being mined within the borders of China. This data comes from a new report that was put together by the combined efforts of crypto asset management company Fidelity and crypto research firm BitOoda, who released it this July. According to researchers, the data was sourced from a variety of public sources, including confidential testimonies from China’s crypto mining community.

Speaking with BTC miners and rig manufacturers/dealers, the researchers located “4.1GW of power across 153 mining sites, including 67 sites or 3GW power capacity, with power price data provided upon condition of anonymity”. As of today, the estimated available power capacity of the BTC mining industry is 9.6GW, which has been growing by 10% per year. The report also indicates that the U.S. is responsible for 14% of global BTC mining, which the researchers feel is a more accurate number than their rough estimate for China. While they’re confident that the report accounts for the majority of BTC mining capacity in the U.S., Iceland, and Canada, the nature of the available data for China and other countries were difficult to corroborate, which means that the 50% figure is highly open to interpretation.

The number is a significant 15% drop from a recent estimate by the University of Cambridge, which claimed that China accounted for 65% of all BTC mining in the world. This previous report dated May 2020 further noted that about half of China’s BTC mining activities originated solely from the autonomous region of Xinjiang.

Notably, the price for BTC has surged this July, which experts blame on increasing tensions between the U.S. and China, the world’s two largest economies. “Bitcoin is currently realising its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin – which shares its key characteristics of being a store of value and scarcity – could potentially knock gold from its long-held position in the future as the world becomes ever-more tech-driven,” explains Nigel Green, founder and chief executive of the deVere Group, a $12bn (£9bn) financing company. Currently, BTC is trading at close to the $11,000 (£8,500) mark, and is expected to cross this threshold soon. Prior to this surge, the U.S. closed its Chinese consulate in Houston, prompting China’s government to close its American consulate in Chengdu.

The current price for BTC represents a more-than-double increase since its noted plunge back in March due to the mass economic effects of the current global health crisis. Furthermore, as the U.S. dollar weakens and tensions continue to escalate between China and the U.S., experts expect BTC to go the same positive direction as spot gold. According to Stephen Innes of forex platform AXI Trader, “If gold surges beyond US$1,900 on the basis of dollar weakness, (BTC) could tag along. This will be driven by investors who see the U.S. dollar depreciating further, potentially eroding its role as the world’s reserve currency.”

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Author: Eleanor Hazelton