Bitcoin’s network hash rate reached unprecedented levels in early September 2019, with new data from the Cambridge Centre for Alternative Finance revealing that China controlled approximately 75.5% of global Bitcoin mining operations — a staggering concentration of computational power that would have profound implications for the industry’s future.
TL;DR
- China controlled 75.5% of Bitcoin’s global hash rate in September 2019
- The United States accounted for only 4.6% of mining activity at the time
- Bitcoin was trading at $10,517 with a total market cap of approximately $188 billion
- Network hash rate approached 80 exahashes per second, a record at the time
- Cambridge data would later show China’s dominance began declining before the 2021 crackdown
The hash rate — a measure of the total computational power dedicated to mining Bitcoin — had been climbing steadily throughout 2019 as miners deployed increasingly efficient ASIC hardware. With Bitcoin trading at $10,517 and mining remaining highly profitable, operations across China’s Sichuan, Xinjiang, and Inner Mongolia provinces continued to expand, drawing on cheap hydroelectric and coal-powered electricity.
China’s Stranglehold on Bitcoin Mining
According to data later published by the Cambridge Centre for Alternative Finance, China’s share of the Bitcoin hash rate stood at 75.5% as of September 2019. This meant that roughly three out of every four Bitcoin mining machines on the planet were operating within Chinese borders. The figure would prove to be the peak of China’s dominance, as the share began a slow decline even before the government’s dramatic crackdown in mid-2021.
By April 2021, Cambridge data showed China’s share had already fallen to 46%, even before Beijing’s explicit ban on cryptocurrency mining. The country’s observed share would eventually drop to effectively zero following the crackdown, with mining operations relocating to the United States, Kazakhstan, and other jurisdictions.
The United States: A Growing but Minor Player
In September 2019, the United States contributed just 4.6% of the global Bitcoin hash rate — a fraction of China’s output. At the time, American mining operations were largely confined to small-scale facilities in Washington State and Texas, taking advantage of locally competitive electricity rates. Few could have predicted that within two years, the US would emerge as the world’s largest Bitcoin mining hub.
The exodus of mining operations from China following the 2021 ban would transform the geographic distribution of Bitcoin mining. By late 2021, the US share had surged to over 35%, driven by massive new facilities in Texas, Georgia, and Kentucky. This shift fundamentally altered the regulatory landscape surrounding Bitcoin mining, bringing it under the purview of US environmental and financial regulators.
Mining Economics in September 2019
With Bitcoin priced at $10,517, mining remained a lucrative enterprise for operators with access to cheap electricity and modern hardware. The network difficulty — a measure of how hard it is to mine a new block — had been adjusting upward consistently, reflecting the influx of new mining machines. Block rewards stood at 12.5 BTC, meaning miners earned approximately $131,462 for each block successfully mined.
The period also saw growing interest in mining pool consolidation. Major Chinese pools including F2Pool, Poolin, and BTC.com collectively controlled the majority of hash rate, further concentrating influence within China’s borders. This centralization was a persistent concern for Bitcoin proponents who valued the network’s decentralization as a core principle.
Energy Consumption Debate Intensifies
As the hash rate climbed, so did scrutiny of Bitcoin’s energy consumption. Researchers estimated that the Bitcoin network was consuming roughly 70 to 80 terawatt-hours of electricity annually — comparable to the energy usage of entire countries. Critics argued that this energy expenditure was wasteful, particularly given China’s reliance on coal-powered electricity in key mining regions like Xinjiang.
However, proponents countered that a significant portion of Chinese mining operations in Sichuan province utilized surplus hydroelectric power during the rainy season, making the environmental impact less severe than critics suggested. The debate over Bitcoin’s energy footprint would continue to intensify in the years that followed, particularly as Elon Musk and Tesla briefly suspended Bitcoin payments in 2021 over environmental concerns.
Why This Matters
The September 2019 hash rate data represents a critical snapshot in Bitcoin’s history — the moment of maximum geographic centralization. At no point before or since has a single country controlled such a dominant share of the network’s mining power. The subsequent dispersal of mining operations around the globe has been one of the most significant structural changes in Bitcoin’s history, strengthening the network’s resilience against single-point regulatory risks. Understanding this period helps explain why Bitcoin’s hash rate distribution today is far more diversified, and why the network is arguably more robust as a result.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency mining involves significant capital expenditure and risk. Always conduct your own research before making investment decisions.