Bitcoin mining has undergone one of the most dramatic geographic shifts in industrial history. Before 2021, China dominated Bitcoin mining with an estimated 65-75% of global hash rate, concentrated in Sichuan (cheap hydroelectric during rainy season), Xinjiang (cheap coal), and Inner Mongolia. Chinese miners had unbeatable advantages: close relationships with ASIC manufacturers (Bitmain and MicroBT are Chinese companies), cheap electricity, and an established ecosystem of hosting providers.
Everything changed in May-June 2021 when China’s State Council announced a total ban on Bitcoin mining. Within weeks, miners scrambled to relocate hundreds of thousands of ASICs to other countries. It was the largest forced migration of computing infrastructure in history. Hash rate dropped 50% overnight — and recovered within six months as machines found new homes.
The United States became the primary beneficiary. Texas emerged as the mining capital of America: deregulated electricity markets, abundant natural gas, political support from Governor Greg Abbott, and ERCOT’s demand response programs that paid miners to curtail during peak demand. By 2023, the US hosted roughly 40% of global hash rate, with Texas, Georgia, and New York as key states.
Other countries carved niches. Kazakhstan absorbed many Chinese miners initially but later cracked down due to grid strain. Russia’s cheap electricity attracted miners despite sanctions risks. Paraguay’s Itaipu Dam provides some of the world’s cheapest hydroelectric power, attracting mining operations. Ethiopia and Oman emerged as surprising mining destinations in 2024, offering cheap power and government support. The UAE’s Marathon Digital partnership brought institutional mining to the Middle East.
The geographic diversification ultimately strengthened Bitcoin. No single country can now threaten the network by banning mining — China’s ban proved that Bitcoin mining simply moves, and the network barely noticed.
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