In 2024, the Bitcoin network saw a remarkable surge in transaction volume, with over $19 trillion settled across its platform, more than double the $8.7 trillion recorded in 2023. This marked a significant recovery after two years of declining transaction volumes, reversing the downward trend seen since 2021.
According to Pierre Rochard, vice president of research at Riot Platforms, Bitcoin transaction volume peaked during the 2021 bull market, reaching about $47 trillion. However, the subsequent years of 2022 and 2023 saw a sharp decline in transaction volume. Rochard commented, “The Bitcoin network finalized more than $19 trillion worth of BTC transactions in 2024, decisively proving that Bitcoin is both a store of value and a medium of exchange.”
This surge in transaction volume occurred alongside other significant milestones for Bitcoin in 2024, including the introduction of a Bitcoin exchange-traded fund (ETF) in the United States, the April 2024 halving event, and the achievement of a new all-time high, with Bitcoin’s price reaching approximately $108,000.
Bitcoin’s hashrate, which measures the total computing power securing the Bitcoin network, reached a new all-time high of 1,000 exahashes per second (EH/s) on January 3, 2025. However, shortly after this peak, the hashrate dipped back to around 775 EH/s, according to data from CryptoQuant.
The increase in hashrate reflects the growing interest and investment in Bitcoin mining, signaling confidence in the network’s long-term security and stability. US-based mining pools played a key role in this development, with US-based pools accounting for over 40% of the global hashrate in 2024. This has led to ongoing debates about which country controls the most computing power on the Bitcoin network.
Mining Pool Dominance and Geographic Distribution
Despite the rising hashrate in the United States, China-based mining pools still dominate the global Bitcoin hashrate. In 2024, two US-based mining pools, Foundry USA and MARA Pool, were responsible for over 38.5% of all Bitcoin blocks mined. This significant share of the global hashrate demonstrates the ongoing shift toward US-based mining operations.
However, determining the precise distribution of Bitcoin’s hashrate dominance remains a challenge due to the pseudonymous and geographically dispersed nature of Bitcoin mining. Mining pool operators may be located in one country, but the hashrate they control can come from individual miners around the world. Furthermore, the use of virtual private networks (VPNs) by miners can further obscure their true geographical location, complicating efforts to measure hashrate dominance accurately.
As mining power continues to decentralize, the question of hashrate dominance between the US and China remains contentious. While the US has made significant strides in increasing its share of the global hashrate, China’s mining pools still maintain a majority of the total computing power on the Bitcoin network.
The geographic distribution of Bitcoin mining is influenced by several factors, including access to cheap electricity, regulatory environments, and technological advancements. In regions where electricity costs are low and government policies are favorable to mining, miners are more likely to establish operations, further shaping the global landscape of Bitcoin mining.
Understanding Bitcoin’s hashrate dominance requires considering a range of factors, such as the varying geographic locations of miners and the use of technologies like VPNs that allow users to mask their IP addresses. These factors make it difficult to establish a clear and accurate gauge of hashrate dominance.
As Bitcoin continues to evolve and grow, the decentralized nature of mining will likely remain a defining feature. This decentralization, coupled with the increasing difficulty of tracking mining activity, highlights the resilience of the Bitcoin network and its ability to adapt to changes in the global mining ecosystem.
What The Author Thinks
The rapid growth of the Bitcoin network, with record-breaking transaction volumes and hashrate increases, underscores the cryptocurrency’s continued relevance in the financial world. As Bitcoin transitions into new phases of adoption, including the rise of ETFs and institutional involvement, the infrastructure supporting its security and scalability—especially mining power—will remain a critical factor in determining its long-term success.
While debates around hashrate dominance persist, one thing is clear: Bitcoin is becoming more embedded in global financial markets, and its infrastructure is evolving to meet growing demand.
Featured image credit: Diana Johanna Velasquez via Vecteezy
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