What are the countries where most cryptocurrencies are mined?


Cryptocurrencies continue to be a promising investment for many. They need a lot of energy to store and operate, which means they can only really be operated in countries or regions where the cost of electricity is low. Although it is becoming more and more difficult to find with the rise in energy prices, there is still various places that are the favorites of future crypto miners.

According to University of Cambridge Bitcoin Electricity Consumption Indexthe nations that mine the most crypto are:

  1. United States35.40% hashrate share
  2. Kazakhstan, 18.1%
  3. Russia, 11.2%
  4. Canada, 9.6%
  5. Ireland, 4.7%

Keep in mind that the most recently published data is from August 2021. This data is outdated, as one of the countries listed completely backed out of its commitment to cryptocurrency in the months following the publication of these informations.

What are the issues with mining so much crypto?

Obviously, large amounts of energy are required to keep these mines in operation. What happens when access to this necessary resource is limited?

It became a problem in Kazakhstan, a nation in Central Asia. Until August 2021, it was the second largest mining site in the world. However, a the energy crisis at the beginning of 2022 could put an end to the adventure for good.

“We have not been able to operate properly since October 13, 2021, when the first power cuts hit us,” Aibolat Balgozhin, Chief Engineer of BTC KZ Told Rest of the world. “And we don’t know when we might be able to operate at full capacity or what solutions the electricity grid operator, KEGOC, will come up with.”

The energy crisis means that the Kazakh government’s priority is no longer courting crypto investors leaving China. The government now taxes energy use by cryptocurrency mines and mining is no longer possible.

The other, more serious problem with the need for large amounts of energy is the effect on the environment. The Bitcoin Energy Consumption Index provided by Digiconomist estimates in April 2022 a single Bitcoin transaction takes nearly 2,189 kWh, or the equivalent of just over 75 days of food for the average American household.

If we stick to the Kazakh example, much of the electricity generated for mining came from burning coal. The production of all this energy often comes from non-renewables, a serious problem as the market continues to grow.


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