Bitcoin Mining: United States Emerges as Leading Producer, Miners’ Income Continues to Rise
According to a report by BanklessTimes, China’s dominant position in the Bitcoin mining industry has long been replaced by the United States. European Union countries only account for 6% of the global Bitcoin mining hash rate. Although the profitability of Bitcoin mining has decreased with the increasing mining difficulty, the income of Bitcoin miners and transaction fees reached a record high in December 2023, thanks to the popularity of BRC-20 and Ordinals.
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The United States is the largest producer of Bitcoin mining, while the EU accounts for only 6%
Bitcoin miner income reached $1.5 billion in December, mining company stocks outperform Bitcoin
In the Bitcoin mining industry, China’s dominant position has long been replaced by the United States, which accounts for 38%, followed by China (21%), Kazakhstan (13%), Canada (7%), Russia (5%), and Germany (3%). The European Union, known for its mining with renewable energy, accounts for less than 6% of the global Bitcoin mining hash rate.
Source: BanklessTimes
Bitcoin mining has always raised concerns about environmental destruction due to its high electricity consumption. The cost of electricity varies among EU member countries. In most countries, electricity prices are expensive, making it less feasible to implement electricity-intensive projects. In addition, most EU countries still need to establish regulatory frameworks, leading to uncertainty that discourages miners.
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However, the report suggests that the future electricity prospects for Bitcoin mining will be renewable energy. The growth and adoption of solar energy are exponential. By 2025, solar energy costs will decrease by 15% to 25%. The rise of wind power generation will also help fill the electricity gap.
Further reading:
How did Iceland become the most intensive Bitcoin mining country?
According to statistics from The Block, although the profitability of Bitcoin mining has decreased as mining difficulty increases, Bitcoin miner income reached $1.51 billion in December 2023, setting a record for the highest monthly income in 2023. In addition, the transaction fees in December were $324 million, also setting a record for the highest monthly transaction fees in the year.
Benefiting from the popularity of BRC-20 and Ordinals in 2023, Bitcoin transaction fees have increased. Many mining companies have quickly expanded their equipment and production to expand their territory. Stablecoin issuer Tether and bankrupt Celsius have also started or are preparing to enter the Bitcoin mining industry.
In 2023, mining company stocks also benefited from the rise of Bitcoin, with astonishing increases. Apart from Argo Blockchain, which rose by 162%, other mining companies saw significant increases surpassing Bitcoin. Marathon and Bitfarms had the highest increases of 628% and 577%, respectively.
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Mining company stocks far outperform Bitcoin, Marathon and Bitfarms have risen over 500% this year
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Bitcoin mining
Further reading:
Mining company HIVE acquires Turis AB, investing in AI and green energy in addition to Bitcoin mining
Tether plans to reinvest $500 million in Bitcoin mining.
