Introduction
As we approach the end of 2024, a significant shift has taken place in the global Bitcoin network’s hash rate. According to recent data, the United States now accounts for over 40% of the total computing power securing the Bitcoin protocol. This development is particularly notable given that two US-based mining pools, Foundry USA and MARA Pool, have collectively accounted for a staggering 38.5% of all blocks mined.
Rise of Foundry USA
Foundry USA has witnessed an impressive growth in its hash rate over the past year. According to TheMinerMag, the pool’s hash rate has surged from 157 exahashes per second (EH/s) at the start of 2024 to approximately 280 EH/s by December. This significant increase has catapulted Foundry USA to the position of single largest mining pool by hash rate, with a commanding 36.5% share of the total hashrate in the Bitcoin network.
MARA Pool’s Growing Influence
Meanwhile, MARA Pool currently boasts an impressive 32 EH/s, translating to approximately 4.35% of the total hash power. This growth highlights the expanding influence of this US-based mining pool and reinforces its position as a key player in the global hashrate landscape.
The Dominance of Chinese Mining Pools
Despite the gains made by Foundry USA and MARA Pool, it is essential to note that Chinese mining pools still maintain control over the majority of the global hash rate. According to TheMinerMag, Chinese miners can circumvent the 2021 ban on crypto mining by leveraging virtual private networks (VPNs) and peer-to-peer apps.
The Challenges of Estimating Hash Rate Dominance
Estimating the true hashrate dominance is a complex task due to the geographic distribution of miners. Mining pools may be headquartered in one country but rely on computing power contributed by miners outside that jurisdiction, making it challenging to determine accurate figures.
Estimated Breakdown of Hash Power by Country
The following table provides an estimated breakdown of hash power by country over the last 30 days:
| Country | Hash Rate (EH/s) |
| — | — |
| China | 42.5% |
| United States | 40.1% |
| Other Countries | 17.4% |
Source: Hashrate Index
Concerns Over Hashtag Centralization
The concentration of computing power into a small set of mining pools has raised alarms among industry executives. Rajiv Khemani, co-founder and CEO of mining chip manufacturer Auradine, warned that critical mining infrastructure such as application-specific integrated circuits (ASICs) should not be manufactured within only one jurisdiction to avoid supply chain risks.
Maintaining Decentralization
Khemani emphasized the importance of maintaining decentralization in the Bitcoin network. He noted that no country should control a majority of the hashrate to keep the decentralized currency as neutral as possible.
Conclusion
The shift in global hash rate dominance is a significant development in the world of cryptocurrency. As we move forward, it will be essential to monitor these changes and ensure that the Bitcoin network remains decentralized. The industry must work together to address concerns over hashrate centralization and maintain the integrity of this critical infrastructure.
References
- TheMinerMag: "US-based mining pools dominate global hashrate"
- Hashrate Index: "Estimated Breakdown of Hash Power by Country"
- Cointelegraph: "Bitcoin decentralization is a matter of national security"