The United States has become a major player in Bitcoin mining, accounting for over 40% of the global hashrate by the end of 2024.
This is largely due to the presence of two major US-based mining pools, Foundry USA and MARA Pool, which together represent more than 38.5% of all blocks mined on the Bitcoin network. Foundry USA has significantly increased its hashrate from the beginning of the year to December, solidifying its position as the largest mining pool with around 36.5% of the total network power. MARA Pool contributes about 4.35% of the total hash power.
Despite the growth of US mining operations, Chinese mining pools still dominate the global hashrate, controlling approximately 55% of the total. This is despite a ban on cryptocurrency mining in China. Chinese miners have found ways to bypass these restrictions using virtual private networks (VPNs) and peer-to-peer applications.
The concentration of computing power within a limited number of mining pools has raised concerns among experts. Rajiv Khemani, CEO of mining chip manufacturer Auradine, has expressed alarm over this centralization, as it poses a threat to the decentralization of Bitcoin. Khemani believes that critical mining infrastructure should not be controlled by a single jurisdiction, as it could lead to vulnerabilities and undermine the neutrality of the currency.
The geographic distribution of miners further complicates the debate on hashrate dominance. Many small miners participate in mining pools headquartered in one country but rely on computing power from miners in various jurisdictions. This makes it difficult to accurately assess the true distribution of hashrate control.
This centralization of mining has implications for national security and the integrity of the Bitcoin network. A balanced and decentralized mining ecosystem is crucial to ensure the resilience and neutrality of Bitcoin as a global financial asset.