New York is winning the intra-USA hash war
There is fierce competition within America to see which state can have the highest hash rate and which can attract the most Bitcoin miners.
So far, and it may come as a surprise, New York is leading the way with 19.9% of the US’s Bitcoin hash rate.
New York is closely followed by Kentucky (18.7%), Georgia (17.3%) and Texas (14%).
The “hash rate" is the total combined computational power being used to mine and process transactions on a Proof-of-Work blockchain. In this case, Bitcoin.
It is an important way to measure the strength, or security, of a blockchain network .
"This is the first time we've actually had state-level insight on where miners are, unless you wanted to go cobble through all the public filings and try to figure it out that way," said Nic Carter, co-founder of Castle Island Ventures, who presented Foundry's data at the Texas Blockchain Summit in Austin recently.
Nic Carter delivered a keynote on “Bitcoin Mining in Texas” at yesterday’s Texas Blockchain Summit— Shaun Connell (@ShaunEnergy) October 9, 2021
Included in the audience was @tedcruz and @CynthiaMLummis and many other politicians and policy makers
Here is a link to his slides …@nic__carter https://t.co/gvw1oK5L5v pic.twitter.com/CLb2iH5l5a
"This is a much more efficient way of figuring out where mining occurs in America,” Carter added.
Carter said there are some miners excluded from the data, meaning that the true numbers may vary. However, it does serve as an indication of wider trends taking place regarding mining in America.
For example, a number of the high-ranking states are focal-points of renewable energy which serves to reposition the narrative around Bitcoin and its carbon footprint.
Other states are also coming up fast and hoping to take advantage of a growing demand for energy, particularly renewable energy, by bitcoin miners, including Nebraska, Kentucky and Tennessee. #bitcoin #bitcoinmininghttps://t.co/R3VMfNPJWG by @bitcoinmagazine— Titan Mining (@Titan_Mining) June 15, 2021
"The migration is definitely a net positive overall," Carter said. "Hashrate moving to the U.S. will mean much lower carbon intensity."
While various leaders claimed that Bitcoin is bad for the environment and wasteful…— croissant (@CroissantEth) October 8, 2021
Over 56% of Bitcoin mining hash rate was recorded to be powered by either sustainable or renewable sources
Bitcoin even acts as a “buyer of last resort” for the entire green energy market https://t.co/Fnd4c7CZaP pic.twitter.com/0arBV0Jma7
This is especially true as miners departed from China, where around 60% of the mining was powered by coal, on the back of the country’s ban.
It took Bitcoin a few months to reach an all-time-high following as China kicked out 90% of its miners. The network is just as strong and now more decentralised as a result.
China kicked out nearly 90% of bitcoin miners in the country earlier this year.— Pomp 🌪 (@APompliano) October 2, 2021
Hash rate fell approximately 50% as a result.
Only a few months later and we are almost back to an all-time high.
Economic incentives drive further network decentralization.
(h/t @coinbeastmedia) pic.twitter.com/EWTh77xUOK