A groundbreaking study by the Cambridge Alternative Finance Center (CCAF) claims that the United States now dominates Bitcoin mining, controlling 75.4% of the global hash power. According to a survey of 49 mining companies, Hashrate, which represents half of the Bitcoin network, said: “The United States has consolidated its position as the world’s largest mining center (75.4% of reported activity).
This concentration is equivalent to about 600 pieces per second (EH/s) of 796 EH/s worldwide. It has attracted urgent attention: Bitcoin mining is dangerously concentrated in the United States, what risks does this pose to the future of emerging assets?
Howard Lutnick, U.S. Secretary of Commerce and former CEO of Cantor Fitzgerald, recently shared his vision for positioning the United States as a Bitcoin superpower. “To me, it’s like gold. It’s a commodity,” Lutnik said in an interview with Frank Corva of Bitcoin Magazine, outlining plans for mining through the Department of Commerce’s investment accelerator, which simplifies miners’ permission to build off-grid power plants. “You can [your data center]. I mean, think about it for a second. ” he said.
This pro-business stance fueled the mining boom in the United States, but the CCAF discovery demonstrated one drawback: centralization. Bitcoiners have been worried about China’s dominance for years, which preceded the June 2021 mining ban, which accounted for 65-75% of the global bridge. “In 2019, China dominated the global Bitcoin mining, accounting for 65-75% of the total Bitcoin network” Natural Communications Research notes. When China banned mining, Hashrate was dispersed around the world, and many operations moved to the U.S., which are states with ample energy and favorable policies. This shift led to a 50% market correction, but increased the pathway by 130% at the end of the year, indicating the market’s resilience.
Although hash concentration in Chinese history has never led to network abuse, this is a constant problem. Now, with the US holding 75% of Hashirat, similar risks arise. The Trump administration is Bitcoin friendly, but future administrations may be hostile, leveraging centralized Hashrat to control the network. Unlike the Chinese ban, the future U.S. government may try to use executive powers such as sanctions to review transactions, a threat through mining concentration.
The federal structure of the United States provides potential safeguards. The division of power between states and federal governments can make the federal excessive resistance. In states with significant mining activity, officials and the public may argue that manipulating the industry can harm the value of Bitcoin, thereby affecting investors. This resistance can preserve the integrity of the network.
A weakening of the U.S. monetary sanctions regime may work for us. After seizing Russian government bonds in 2022, countries that were not aligned with U.S. policies have reduced U.S. bond purchases, undermining the abuse of Fiat Railway in sanctions. The Trump administration is moving toward tariffs that control the flow of goods rather than currencies, potentially reducing the threat of monetary scrutiny. This pivot can buy Bitcoin time, as concentrated hashrates may be a soft target for federal intervention.
However, US Bitcoin must remain proactive. Deepening Bitcoin adoption and embedding it widely in the economy, the world can block censorship because attacks on the network can damage personal wealth and spark opposition. History also shows that miners adapt when they are displaced – China’s ban proves this – but the government learned. The future U.S. government may not ban mining, but seek to control centralization.
The Bitcoin industry faces a key key. In the United States, 75.4% of the large number of bridges account for, even if the estimate is 50%, there is a huge risk of centralization. Should we diversify globally or tend toward the US mining dominance? As Lutnick’s vision unfolds, Bitcoin must ensure that this sovereign fund remains resilient, no matter who has the power.
