The countries in the European Union collectively account for 6% of the Bitcoin network’s hashrate while the U.S. has emerged as the world’s number one bitcoin miner, a new report has said. The economic bloc’s bitcoin mining prospects are however being hamstrung by geopolitical tensions and the region’s energy dependence.
The EU’s Bitcoin Mining Prospects
According to the latest Bankless Times report on bitcoin mining, the 28 countries comprising the European Union (EU) collectively account for 6% of the Bitcoin network’s hashrate. On the other hand, Ireland, whose 2023 gross domestic product (GDP) of $115 billion is nearly 160 times less than the European Union’s GDP, accounts for 2% of the Bitcoin network’s hashrate.
Despite having the potential to increase its share of the Bitcoin network’s hashrate, the EU countries lag because they lack the infrastructure required to achieve this. Commenting on this as well as the report’s data, Alice Leetham from Bankless Times said:
The European Union has the capacity and ability to improve their hashrate. Mining is the current most profitable frontier in the crypto ecosystem. But for them to benefit, they have to lay ground.
The economic bloc’s prospects for bitcoin mining are however greatly impacted by geopolitical tensions and energy dependence. This, together with the general lack of regulatory frameworks to oversee mining, often leaves miners vulnerable and uncertain.
Meanwhile, the report’s data shows that the United States is now the leading bitcoin mining nation-state with 38% of the network’s hashrate. China, which until recently accounted for more than 50% of the Bitcoin network, is in second place with 21%, followed by Kazakhstan (13%) and Canada (7%). Russia completes the top five with 5%.
To address bitcoin mining’s perceived over-reliance on electricity generated by fossil fuels, the Bankless Times report stated that the “future power prospect for Bitcoin mining is renewable energy.” This is expected to be made possible by the anticipated 15% to 25% decrease in solar costs, as well as the increased share of wind-generated power.
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