According to a report by BanklessTimes, China’s dominant position in the Bitcoin mining industry has long been replaced by the United States.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 declined due to 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, with mining company stocks outperforming 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In the Bitcoin mining industry, China’s dominant position has long been replaced by the United States, which accounts for 38%, followed by China (21%), Kazakhstan (13%), Canada (7%), Russia (5%), and Germany (3%).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 damage due to its high energy consumption. The cost of electricity varies among EU member states. In most countries, electricity prices are expensive, making it less feasible to implement electricity-intensive projects. Additionally, 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 of Bitcoin mining will be powered by renewable energy. The growth and exponential adoption of solar energy will lead to a 15% to 25% decrease in solar energy costs by 2025. The rise of wind power generation will also help bridge the electricity gap.
Further reading:
How did Iceland become the most intensive Bitcoin mining country in the world?
According to statistics from The Block, although the profitability of Bitcoin mining has decreased over the years due to the increasing mining difficulty, Bitcoin miner income reached $1.51 billion in December 2023, setting a record for the highest monthly income in 2023. In addition, transaction fees in December amounted to $324 million, also setting a record for the highest monthly transaction fees in the year.
Benefiting from the BRC-20 and Ordinals hype in 2023, Bitcoin transaction fees increased. Several mining companies quickly expanded their operations by increasing equipment and production capacity. Stablecoin issuer Tether and the bankrupt Celsius have also started or are preparing to enter the Bitcoin mining industry.
In 2023, mining company stocks also experienced remarkable gains due to the rise of Bitcoin. Apart from Argo Blockchain, which saw a 162% increase in stock value, other mining companies far outperformed Bitcoin. Marathon and Bitfarms had the highest increases, reaching 628% and 577% respectively.
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Mining company stocks far outperform Bitcoin, Marathon and Bitfarms have already gained over 500% this year.
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Bitcoin mining
Further reading:
Mining company HIVE acquires Turis AB, expanding into AI and green energy in addition to Bitcoin mining.
Tether plans to invest $500 million in Bitcoin mining again.