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Bitcoin mining is shaping geopolitics and national security strategies. In a groundbreaking thesis Softwar, U.S. Space Force officer Jason Lowery argued that Bitcoin is more than just a decentralized digital currency—it’s a potential cornerstone of national defense. Lowery envisioned Bitcoin as a “non-lethal weapon system,” enabling nations to secure economic power without resorting to physical conflict. This bold perspective re-frames Bitcoin as not merely a tool for financial transactions but as a strategic asset with profound implications for global security and sovereignty.
Lowery’s thesis underscores a growing realization among nation-states: Bitcoin mining is not just an economic opportunity; it’s a geopolitical imperative. Countries around the world are scrambling to secure their share of Bitcoin’s finite supply, leveraging their energy resources and technological infrastructure to stake their claim in this new digital frontier.
This article delves into the current state of Bitcoin mining globally, exploring which countries dominate the hash rate, how they’re shaping the industry, and the geopolitical ripple effects that could redefine the world’s energy and economic systems.
Where Bitcoin Mining Thrives: Global Hash Rate Distribution
Bitcoin mining relies heavily on computational power, measured as the network’s hash rate. The global distribution of this hash rate provides a snapshot of where mining activity is concentrated and highlights the nations that have embraced this new digital gold rush. Below is a heat map of bitcoin mining globally. You can find this map on this website here.
Image from chainbulletin.com (https://chainbulletin.com/bitcoin-mining-map/)
United States: The Mining Leader
The U.S. leads the world in Bitcoin mining, contributing approximately 37.8% of the global hash rate. This dominance emerged following China’s 2021 ban on cryptocurrency mining, which drove many operations to relocate. States like Texas, known for low energy costs and a favorable regulatory environment, have become major hubs for mining. This provides the USA great geopolitical power in a digital future.
China: The Unexpected Comeback
Despite its mining ban, China still accounts for 21% of the global hash rate, indicating the persistence of underground mining activities. Technological hubs like Hangzhou continue to host mining operations, albeit discreetly, reflecting China’s historical role as a dominant player in the industry.
Kazakhstan: A Rising Star
Kazakhstan has established itself as a significant mining destination, contributing 13% of the global hash rate. Its abundant coal-based energy and lenient regulations have attracted large-scale mining operations. However, recent government crackdowns on illegal mining have added some uncertainty to its future role.
Canada and Russia
Canada, leveraging its renewable energy resources, contributes about 7% of the global hash rate. Meanwhile, Russia, with its vast energy reserves, accounts for 5%, highlighting its strategic focus on becoming a key player in the Bitcoin mining ecosystem.
Newsworthy Developments in Bitcoin Mining
The global spread of Bitcoin mining has led to fascinating and sometimes surprising developments. Let’s explore some of the most notable recent stories.
1. Ethiopia’s Bitcoin Mining Venture
Ethiopia, in partnership with Chinese firms, has begun mining Bitcoin using its abundant hydro-power resources. This initiative seeks to turn the country’s untapped renewable energy potential into an economic asset, fostering development in a region with historically low access to electricity.
Read more about Ethiopia’s venture here.
2. Argentina’s Mining Expansion
Facing inflation and economic challenges, Argentina has embraced Bitcoin mining as a way to stabilize its economy. With its subsidized electricity costs, the country has become a haven for miners looking for profitability in uncertain times. Famously, the new administration has opened a museum, which includes live bitcoin miners contributing hash rate to the global network.
Learn more about Argentina’s initiatives here.
3. El Salvador’s Volcano-Powered Mining
El Salvador, the first country to adopt Bitcoin as legal tender, has taken an innovative approach to mining. By harnessing geothermal energy from its volcanoes, the nation is powering its state-backed mining operations. This strategy showcases the potential for renewable energy to drive the future of Bitcoin mining.
Discover more about El Salvador’s mining here.
4. Russia’s Strategic Moves in Mining
Russia has unveiled plans to establish Bitcoin mining and AI facilities in collaboration with BRICS nations. This initiative underscores Russia’s commitment to leveraging Bitcoin as a strategic economic tool in the face of increasing global sanctions.
Read about Russia’s mining strategy here.
5. Saudi Arabia’s Entrance into Bitcoin Mining
Within Saudi Arabia, another BRICS nation, there is a movement towards mining Bitcoin. Given the existence of many stranded oil resources in the nation, Bitcoin provides an incredible opportunity for the nation to harness more revenue from their energy resources.
Learn more about Saudi Arabia’s mining plans here.
6. Bhutan’s Hidden Mining Operations
In a surprising revelation, Bhutan disclosed that its state-owned enterprises have been quietly mining Bitcoin using the country’s abundant hydroelectric power. This underscores the growing recognition of Bitcoin as a valuable national asset. As far as government-owned Bitcoin, Bhutan may have the highest BTC per capita in the world.
Read more about Bhutan’s mining here.
The Broader Implications of Mining
Bitcoin mining is far more than a technical process—it has profound economic, environmental, and geopolitical implications.
1. Decentralizing Energy Markets
Bitcoin mining incentivizes the development of renewable energy projects by providing a guaranteed buyer for surplus energy. This reduces waste and promotes a more sustainable energy grid.
2. Economic Development in Underserved Regions
From Ethiopia to Bhutan, mining operations are driving infrastructure development, creating jobs, and fostering economic growth in regions that previously lacked access to modern energy systems.
3. Strengthening Geopolitical Influence
Countries like Russia and Saudi Arabia are leveraging Bitcoin mining to assert economic independence and gain a foothold in the geopolitical arena. This marks a shift in how nations view Bitcoin—not as a threat, but as a strategic asset.
Conclusion: The Future of Bitcoin Mining
The state of Bitcoin mining is a testament to the cryptocurrency’s growing importance on the world stage. From the U.S. to remote regions in Bhutan, mining operations are reshaping economies, stabilizing energy markets, and positioning Bitcoin as a cornerstone of future financial systems.
For investors, miners, and policymakers, understanding this trend is critical. Whether you’re mining, holding, or simply observing, one thing is clear: Bitcoin mining is driving global innovation and change, and the story is just beginning.
If you’re ready to join the Bitcoin mining revolution, explore opportunities with Abundant Mines to secure your place in this rapidly evolving landscape. Book a call now.
Disclaimer: The information provided in this blog is for informational and educational purposes only and should not be construed as financial advice. Please consult with a financial advisor or conduct your own research before making any financial decisions.
