Does China control bitcoin mining?
In 2021, China banned domestic crypto mining, leading Chinese crypto miners to move their operations elsewhere, including the U.S. With support from Gov.
A succession of developing countries like Kazakhstan and Iran initially embraced bitcoin mining, only to turn on the sector when its energy use threatened to fuel domestic discontent. China's reign as the epicentre of bitcoin mining came to an abrupt end in 2021, when the government banned it.
Yet, China's bitcoin mining ban shut down the whole industry and scattered bitcoin miners to the winds. It's been two years now - and it should be said that Bitcoin and the hash power built on securing it is stronger than ever.
Governments Holding the Most Bitcoin
Governments across the world own an estimated 565,749 BTC, representing 2.69% of the total supply. The Chinese government reportedly holds 194,000 BTC that was recovered from the Plustoken scam in 2019. Members of the Ukrainian government privately hold roughly 46,351 BTC.
By September 2021, China made up just over 22% of the total bitcoin mining market, according to Cambridge University research. Bitcoin miners aren't giving up in China despite Beijing's ban on the practice.
China's government said it was especially concerned about crypto mining's effect on the environment and people using digital currencies for fraud and money laundering. The country is now pushing their own digital yuan currency, and trying to make it more widely available to consumers.
The biggest bitcoin mining countries are: 1) The United States (40%) 2) China (15%) 3) Russia (12%) This map will look very different in 1-2 years as miners in Africa and Latin America expand operations. A massive trend in the industry will be miners migrating toward these regions.
Russian citizens reportedly own 16.5 trillion rubles ($214 billion) worth of cryptocurrencies, according to government estimates. Records show that China holds 194,000 BTC, 833,000 ETH, and a variety of other unnamed cryptocurrencies.
In May 2021, Chinese authorities ordered a crackdown on crypto mining and trading and regulators banned financial institutions from offering services related to cryptocurrencies.
It is certainly possible that the US President could issue an Executive Order banning Bitcoin. Remember, Executive Order 6102 outlawed gold ownership for American citizens from 1933 until it was repealed in 1974. However, that outcome is unlikely for four reasons.
Who is actually controlling bitcoin?
Bitcoin was invented in 2009 by the mysterious Satoshi Nakamoto. It is decentralized, meaning it's not controlled by any person or entity.
As of March 2023, the top 1% of Bitcoin addresses hold over 90% of the total Bitcoin supply, according to Bitinfocharts.
Billionaire Elon Musk is a huge fan of cutting-edge technology and is usually ahead of the curve when it comes to finance, but he's not a bitcoin bull. The co-founder of Tesla Inc. revealed on Twitter that he owns only a tiny fraction of one bitcoin token.
China's Hydropower Boom
Electricity Costs in China are already some of the lowest in the world. This is mainly as a result of the abundance of coal that is used with very little in the way of regulatory barriers such as environmental protections. Yet , what may be bad for the environment is good for Bitcoin miners.
Miners who successfully add blocks to a blockchain automatically receive transaction processing fees and new digital tokens. Creates economic opportunities. The accessibility of crypto mining is creating new business opportunities for tech-savvy people around the world.
The Grand Ethiopian Renaissance Dam in Guba in 2022. Last spring, cargo containers began appearing near electricity substations connected to the recently built Grand Ethiopian Renaissance Dam, Africa's largest.
In July 2020, Vladimir Putin signed a regulation on digital financial asset (DFA) transactions that legalizes cryptocurrency transactions but prohibits their use as payments for goods and services. Russian banks and exchanges can be operators of DFAs if they register with the central bank known as the Bank of Russia.
The digital RMB is legal tender and has equivalent value with other forms of renminbi, also known as the Chinese yuan (CNY), such as bills and coins.
Cities in Russia with a Bitcoin ATM 2023
The country was estimated to have around 75 cryptocurrency withdrawal machines that allows users to connect to a Bitcoin wallet or exchange. An open-source website lists Russia in the top 10 of the world in terms of how many companies accept cryptocurrency payments.
After all 21 million bitcoin are mined, which is estimated to occur around the year 2140, the network will no longer produce new bitcoin. The block subsidy will go to zero but miners will continue to receive transaction fees, which will make up an ever greater portion of the block reward.
Who owns the most Bitcoin?
Who Owns the Most Bitcoins? Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.
There are 88,200 crypto millionaires worldwide. 40,500 of these millionaires have amassed their fortune in Bitcoin (BTC). The number of global crypto owners reached 580 million by the end of 2023, according to Crypto.com.
As such, Bitcoin's ownership structure reflects the decentralized, open-source nature of Bitcoin's technology. In reality, only 2.3% of all Bitcoin owners own 1 BTC or more (worth around $35K per Bitcoin as of November 6th, 2023).
Last year, the U.S. held 69,640 bitcoins according to the research a doctoral thesis by Sachin Jaitly, a general partner at investment advisor Morgan Creek Capital. That's 94% of the bitcoin in global government coffers at the time.
