US Accounts for Over 40% of Global Bitcoin Hashrate: Report Raises Concerns on Centralization

The United States has solidified its position as a global leader in Bitcoin mining, accounting for more than 40% of the network's total hashrate—the computational power that underpins and secures the Bitcoin protocol. According to a report by TheMinerMag, two major US-based mining pools, Foundry USA and MARA Pool, now control over 38.5% of the total Bitcoin hash power.

As of the end of 2024, Foundry USA has emerged as the dominant player in the mining sector, growing its hashrate from 157 exahashes per second (EH/s) at the beginning of the year to an impressive 280 EH/s by December. This makes Foundry the largest mining pool, commanding roughly 36.5% of the network's total hashrate.

Meanwhile, MARA Pool, another key player in the US mining ecosystem, contributes around 32 EH/s or 4.35% of the overall hash power. While these figures reflect the increasing prominence of US-based miners, Chinese mining pools still control the majority of global hashrate, despite China’s 2021 ban on cryptocurrency mining.

The Debate Over Hashrate Dominance

Hashrate dominance is a topic that continues to spark debate within the Bitcoin community, largely due to the pseudonymous nature of mining and the geographically distributed nature of the industry. Despite the Chinese government's ban on crypto mining, Chinese pools still manage to control a significant portion of the global hashrate.

One notable observation comes from Ki Young Ju, the founder and CEO of CryptoQuant, who pointed out in September 2024 that Chinese mining pools account for approximately 55% of the global hashrate. Many Chinese miners have circumvented the ban by using virtual private networks (VPNs) to mask their IP addresses and connect to mining pools outside of China. Peer-to-peer apps also enable individuals in China to bypass the national firewall, allowing them to engage in cryptocurrency trading and mining activities.

This geographic complexity further complicates efforts to pinpoint the true dominance of any particular country or region in terms of Bitcoin mining power. Mining pools may have their headquarters in one jurisdiction but rely on computing power contributed by miners from all over the world.

Concerns Over Centralization and Security Risks

While the concentration of mining power in a few large pools is a sign of the industry’s maturation, it has raised concerns among industry executives. The centralization of Bitcoin’s mining power could have far-reaching consequences, particularly in terms of security and decentralization.

In October 2024, Rajiv Khemani, co-founder and CEO of mining chip manufacturer Auradine, expressed his concerns to Cointelegraph, stressing that the decentralization of Bitcoin was a matter of national security. He warned against the over-concentration of critical mining infrastructure, such as application-specific integrated circuits (ASICs), within a single jurisdiction. A lack of diversification could expose the Bitcoin network to supply chain risks and vulnerabilities.

Khemani also pointed out the risks of a single country controlling the majority of the Bitcoin network’s hashrate. For Bitcoin to maintain its neutrality and decentralized nature, no nation should hold such power over the network, he emphasized.

As Bitcoin mining becomes increasingly dominated by a small group of large pools, the implications for the network’s security, stability, and decentralization are becoming ever more significant. For now, the debate over hashrate dominance continues, but the shift towards US-based mining is clear—and the need for greater decentralization remains a pressing issue.