European Union countries account for 6% of the Bitcoin network hashrate, and the United States has emerged as the world’s No. 1 Bitcoin miner, a new report says. However, the economic bloc’s Bitcoin mining prospects are hampered by geopolitical tensions and the region’s energy dependence..
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Bitcoin Mining Outlook in the EU
According to Bankless Times’ latest report on Bitcoin mining, the 28 countries that make up the European Union (EU) collectively account for 6% of the Bitcoin network hashrate. Meanwhile, Ireland, with a 2023 gross domestic product (GDP) of $115 billion, nearly 160 times the GDP of the European Union, accounts for 2% of the Bitcoin network hashrate.
Despite having the potential to increase their share of the Bitcoin network hash rate, EU countries are lagging behind due to a lack of the necessary infrastructure to achieve this. Alice Leetham of Bankless Times had this to say about the report’s data:
The European Union has the capacity and ability to improve hashrate. Mining is currently the most profitable sector in the cryptocurrency ecosystem. But for them to benefit, they need to lay the groundwork.
However, the economic bloc’s prospects for Bitcoin mining are greatly influenced by geopolitical tensions and energy dependence. This, coupled with the lack of a general regulatory framework overseeing mining, often leaves miners vulnerable and uncertain.
Meanwhile, the report’s data shows that the United States is currently the leading Bitcoin mining country, accounting for 38% of the network’s hashrate. China, which until recently accounted for more than 50% of the Bitcoin network, ranked second with 21%, followed by Kazakhstan (13%) and Canada (7%). Russia rounded out the top five with 5%.
Addressing the perception that Bitcoin mining is overly reliant on electricity generated from fossil fuels, the Bankless Times report stated that “Bitcoin mining’s future power prospects are renewable energy.” This is expected to be possible as the cost of solar power generation decreases by 15-25% and the share of wind power generation increases.
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Source: Bitcoin.com